The total stablecoin market capitalization, excluding algorithmic stablecoins, has reached a new all-time high, according to DefiLlama data. The stablecoin market cap expanded by
0.8% over the past week to over
$168.1 billion, surpassing the previous peak of around
$167 billion in March 2022.
Resurgence in Stablecoin Market Cap
The market cap had previously hit a low of approximately
$122 billion in October 2023, following a decline that began after the March 2022 high. However, since the beginning of 2024, the stablecoin market cap has been on a steady rise, indicating a resurgence in interest and investment in stablecoins.
Institutional Investors Driving Growth?
Analysts suggest that the rising stablecoin market cap may indicate that crypto is attracting more money from institutional investors.
Rachael Lucas, a crypto analyst at BTCMarkets, noted that demand for stability in uncertain market conditions has traditionally driven investors toward stablecoins as a safe haven. Additionally, the increase in the stablecoin market cap could reflect growing confidence in the crypto market, especially from institutional investors.
Lucas also pointed out that stablecoins are increasingly utilized by institutional investors as a bridge between traditional finance (TradFi) and crypto. This trend underscores a broader shift towards integrating stable digital assets into both trading strategies and long-term portfolios.
USDT and USDC Lead the Market
USDT, the largest stablecoin, has seen its market cap grow by about
28% this year, from
$91.68 billion at the beginning of 2024 to
$117.84 billion today. USDT now accounts for about
70% of the total market capitalization.
Circle’s USDC has also experienced growth in 2024, increasing from
$23.8 billion in early January to
$34.4 billion today, further solidifying the stablecoin market's growth trajectory.
Read more at
The Block.
