A recent report from CCData reveals that the market capitalization of stablecoins has surged to its highest level since April 2022, marking a continuation of eight consecutive months of growth. As of May 29, the cryptocurrency analytics platform notes that the stablecoin market cap has increased by 0.63% since the beginning of the month, reaching an impressive $161 billion. Despite this substantial growth, the dominance of stablecoins in the overall cryptocurrency market has experienced a slight decline, dropping to 6.07% from its previous level of 7% in March.
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Source: CCCData
Among the top ten stablecoins, Athena USDe has seen its market cap rise for the fifth consecutive month, jumping by 11.6% to reach $2.61 billion. CCData attributes this notable increase to the expanded utility of Athena USDe as collateral for perpetual trading on the Bybit platform.
Source: CCCData
As of May 29, Tether, the leading stablecoin by market capitalization, reached a historic milestone with its market cap soaring to an unprecedented $111 billion. This surge propelled Tether's dominance in the stablecoin market to an impressive 69.3%.
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Concurrently, BlackRock's tokenized fund token, BUIDL, experienced a remarkable surge of 19.6%, reaching a value of $448 million. This surge positions BUIDL as the largest tokenized treasury fund, surpassing Franklin Templeton's BENJI. BUIDL represents a share in BlackRock’s USD Institutional Digital Liquidity Fund and offers the flexibility to be exchanged for USDC on a 1:1 basis.
Circle's USDC Market Growth and Stablecoin Trends
The report also highlights an ongoing increase in Circle's USDC market capitalization, which reached $32.6 billion in May, marking the sixth consecutive month of growth. This rise aligns with heightened demand, as USDC pairs recorded an all-time high monthly trading volume in March. USDC's market share by trading volume has increased for the second month in a row, reaching 8.27%.
Source: CCCData
The report attributes USDC's growth to increased on-chain trading activity on networks such as Base and Solana, with the percentage of USDC supply on these chains rising to 9.29% and 7.78%, respectively.
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Despite the growth in market capitalization, stablecoin trading volumes on centralized exchanges hit a monthly low of $829 billion on May 23. Nonetheless, the CCData report concludes that the total market capitalization of stablecoins has now rebounded from the losses incurred following the collapse of the Terra Luna ecosystem and the near-total depeg of the algorithmic stablecoin TerraClassicUSD (USTC), which initiated a seventeen-month downtrend.
See more: Cryptocurrency Prices and Market Cap
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