This week, the market value of fiat-pegged cryptocurrencies has reached $160 billion, a level last seen in May 2022 before the Terra’s UST crisis, when it lost its $1 parity on May 9, 2022. Over the last month, there has been a notable uptick in the supply of various stablecoins, led by Ethena’s USDE, which saw an increase of approximately 86.8% in its supply.
Since December 30, 2023, the stablecoin sector has expanded significantly, adding $28.63 billion to its market cap, and climbing from $150 billion to $160.03 billion in just over a month. This growth is largely driven by an increase in the supply of several key dollar-pegged cryptocurrencies.
Tether (USDT), the largest stablecoin by market cap, now boasts a valuation of $109.9 billion with a circulating supply of 109.84 billion USDT, reflecting a supply growth of 5.6% over the last month.
Circle’s USD Coin (USDC), which ranks second, saw its supply expand by 6.4%, pushing its market cap just over the $34 billion mark.
Collectively, USDT and USDC constitute over 93% of the total stablecoin market value. Additionally, Makerdao’s DAI saw a 9.3% rise in supply this past month, which has brought its market cap to $5.2 billion.
First Digital’s FDUSD reported a market value of $3.74 billion after a 43% increase in supply over the last 30 days. Ethena’s USDE, however, has shown the most significant growth with an 86.8% surge in supply, bringing its market valuation to around $2.37 billion as of April 22, 2024.
These five stablecoins together make up 96.98% of the entire stablecoin market, holding $155.21 billion of the total $160.03 billion market value. As the stablecoin market crosses new milestones, its rapid expansion reflects increasing trust in fiat-pegged cryptocurrencies.
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