Stablecoin Market Cap Reaches 170 Billion How are USDT and USDC Performing

Stablecoin Total Market Value Reaches $170 Billion



The global stablecoin supply has decreased by 2.7% since its peak on August 30, but is expected to rebound as token prices continue to rise.
The decline in stablecoin supply over the past 60 days is linked to the decrease in PayPal’s PYUSD, which previously received liquidity incentives through multiple Solana DeFi protocols.
At its peak, PYUSD had an annual yield of nearly 20% on Kamino Finance, but it has now dropped to just 7.9%. However, in the long run, this decline appears minimal compared to the 100-fold increase in stablecoin supply since early 2019.
Currently, the total market value of stablecoins stands at $170.93 billion.



Euro-pegged stablecoins are on the rise, with Circle’s EURC supply increasing by over 40% in the past month.
Base has emerged as the primary beneficiary, with the value of EURC on the chain rising from $22 million to $48 million. This aligns with Coinbase’s efforts to meet MiCA compliance, which it views as a competitive advantage.



Historically, banks have been reluctant to issue stablecoins.
However, the EURCV issued by Crédit Agricole, a stablecoin based on Ethereum, is currently the only bank-issued stablecoin, having increased by 11% this month, reaching a market value of $41.7 million.
Crédit Agricole has also announced plans to launch EURCV on Solana. This initiative, alongside stablecoin collaborations with BBVA and Visa, indicates that banks may ultimately take a more proactive role.



Trading Focus: The Bridge, acquired by payment giant Stripe this week, is not the only rapidly growing stablecoin business.
The increasing number of token holders and transfer activity indicates a growing adoption of Sling Money. Sling Money is a cross-border payment application built using the USDP stablecoin issued by Paxos, which also issues PayPal’s PYUSD on Solana.
Since early June, the number of USDP token holders on Solana has surged from 33 to 1,212, while monthly transfer volume has increased from $111,426 to $839,199.
USDC
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The circulating supply of USDC has reached 34.69 billion, with daily trading volume fluctuating between $1 billion and $6 billion.
USDC’s trading volume peaked at nearly $200 billion during the market active period at the end of 2022.
While Ethereum still holds the largest share of trading volume, Layer 2 solutions like Arbitrum have gradually captured more market share since 2023. Trading patterns exhibit cyclical behavior, with peaks occurring approximately every 3 to 4 months, indicating regular active periods in the market.
Although trading volume has decreased compared to 2022, the current level of around $80 billion to $100 billion represents a significant increase compared to before 2021.



Daily transaction activity surged from less than 2 million transactions at the beginning of 2021 to over 20 million by the end of 2023, with significant growth in the fourth quarter on Arbitrum, Base, and Solana.
Layer 2 and other chains are attracting more trading activity, diminishing Ethereum’s dominance. The current daily transaction volume of about 12 million indicates the maturation of the entire ecosystem.



The distribution of USDC transactions across different blockchains shows distinct characteristics. Solana leads in total transaction volume, primarily for small transactions below $100, while Ethereum dominates in large transactions exceeding $1 million.
Layer 2 solutions primarily handle medium-sized transactions ranging from $1,000 to $100,000, indicating that users choose different chains based on transaction amounts and costs.



Trading Focus: Users show no fear when making large USDC transfers on Ethereum Layer 2. For example, a transaction of $102,616,661.02 USDC was sent to Base.
The sender transferred the entire sum into Binance 76. Additionally, the gas fee for this transaction was only $0.002528.
USDT
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Tether’s Growth Accelerates: 36 Million New Accounts Added in Q3 2024, Setting a Record Quarter
Tether’s growth rate is accelerating—36 million new accounts were added in the third quarter, marking the best quarter for this stablecoin giant to date.



In the first six months, USDT issuance on the TON chain reached 768 million, making it the fastest-growing stablecoin across all chains to date.



67% of USDT on the Tron chain is distributed outside the top 500 accounts, demonstrating the widespread distribution of this stablecoin on the blockchain. In contrast, this ratio was only 49% at the end of 2023 and 57% at the end of Q2 2024.



This article is a collaborative repost from: Deep Tide