Total emission of stablecoins exceeds $100 billion for the first time in history

Stablecoins reached a market cap of $100 billion for the first time in history. USDT remains the most popular stablecoin, accounting for over 60% of the market.

Against the background of the growth in the rate of cryptocurrencies and the influx of new users to crypto exchanges, the emission of stablecoins exceeded $100 billion. As early as January 1, the total market capitalization of stablecoins (USDT, USDC, BUSD, DAI, PAX and a few more coins) was only $30 billion. Stablecoins are traditionally pegged to the US dollar and act as an alternative to fiat currency on crypto trading platforms.

USDT issued by Tether remains the most popular stablecoin in the crypto world. It accounts for over 60% of the total stablecoin market capitalization, with emissions being over $61 billion. If at the dawn of its existence, USDT was issued on the Omni network on the bitcoin blockchain, then, later on, the issue moved to Ethereum and TRON. Currently, USDT stablecoins issued on the TRON blockchain make up the majority of USDT coins.

The next most popular stablecoin is USDC, which managed to gain a stake in the crypto market mainly through partnerships with companies such as VISA. Most of the USDC coins (about $20 billion) are issued in the form of ERC-20 tokens on the Ethereum blockchain. Approximately $750 million USDC operates on the Solana network.

The growth in demand for stablecoins is due not only to the growth in the rate of the largest cryptocurrencies, but also to the interest in the decentralized finance market, where users can borrow digital assets without the third trusted party participation.

BUSD issued by the Binance crypto exchange is the third stablecoin by the market cap. Currently, there are $8.8 billion coins issued.

According to research firm Glassnode, investors were actively buying stablecoins during the recent drop in bitcoin price. In particular, the volume of USDT, USDC and DAI on investors’ wallets increased by $14.2, $9.72 and $1.22 billion, respectively. This could mean traders actively bought stablecoin trying to preserve portfolio value.

Via: 2Coinfox.info

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