According to a recent CCData study, the global stablecoin markets capitalization has reached an all-time record of $190 billion, which is higher than its previous high set in April 20,22.
Sector growth was robust, with a 9.94% rise from October. The highest increase month-to-month since November 20,21.
The 14th month in a row that the market capitalization has grown at the end of each month is also reflected by this milestone, which reflects the global demand for stablecoins to be an important part of digital finance.
USDT is leading growth
TetherUSD remains dominant, with a market capitalization of $133 billion. This is a 10.5% rise. The stablecoin has now risen for 15 consecutive months, accounting for 69.9% in the entire sector.
Similarly, Circle’s USD Coin (USDC) also posted significant growth, climbing 12.1% to $38.9 billion, the highest level since February 2023.
Meanwhile, Ethena Labs’ USDe stood out with a 42.2% rise to a new all-time high of $3.86 billion, driven by the mid-month activation of revenue-sharing mechanisms for ENA token holders.
First Digital USD, Sky Dollar, and Sky Dollars (USDS), on the other hand, saw their respective market capitalizations fall by 14.9%, and 8.34%.
In November, 38 stablecoins out of the total 198 analyzed had reached new record highs. This indicates a highly competitive market. While USDT, USDC, and USDe were among the largest contributors to the sector’s growth, some stablecoins faced challenges.
Stablecoins in euro-denominated currency are also emerging as a new area for innovation and compliance. This positions Europe as a possible leader of the next stablecoin phase.
The market capitalization of stablecoins pegged to the euro fell by 11.4%, from $256 million, despite positive events in recent weeks in this region.
Trading volume near record highs
The volume of stablecoins traded on central exchanges increased by 77.5% in November. As of Nov. 25, the total was $1.81 trillion.
The surge puts trading activity on track to surpass March’s yearly record, buoyed by growing institutional interest and optimism over regulatory clarity in the US. The analysts attribute this increase to increased confidence in stablecoins, which are reliable assets that can be used for trading or hedging on a volatile cryptocurrency market.
USDT dominated trade activity across centralized exchanges with 82.7% market share. FDUSD ranked second, followed by USDC, which had a 9.01% share.
According to the report, FDUSD’s dominance reflects its strong adoption in Asian markets, particularly in cross-border payment applications.
The trading volume of euro-denominated Stablecoins increased by 52.9% to $657 Million during the month. This indicates that European users are increasingly adopting these stablecoins.
While analysts believe that market capital reductions might reflect a temporary consolidation, rising trading activities indicate steady progress toward building utility and complying with the MiCA framework.
Optimistic outlook
The role of stablecoins as a backbone for crypto trading and settlement is becoming more evident. The growth of stablecoins is set to continue with over $1.81 billion in trading volume per month and increasing institutional confidence.
The US and Europe are expected to legitimize asset classes by providing more clarity on the regulatory front, which will encourage wider adoption in all industries. Stablecoins are diversifying into new uses like cross-border payment and yield-generating mechanism, which will play an important role in the future of digital financial services.
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