The stablecoin market is growing rapidly, reaching $164 billion in July 2024. The sector’s catalysts are the increasing trading volume of stablecoins and their growing appeal to different users.
According to CCData’s latest report, the stablecoin market grew strongly over the past ten months. In July alone, the market capitalization of stablecoins increased by 2.11%, reaching $164 billion. The dominance of stablecoins in the crypto market rose to 6.93%.
The report emphasizes traders’ growing interest in stablecoins. The trading volume in July reached $795 billion. Analysts attribute this trend to market participants’ growing confidence in this asset class despite regulatory changes.
Studies showed that in early 2024, the stablecoin market was regulated by about 60% of the world’s countries, and stablecoin usage reached $1.68 trillion per month.
The report also summarizes the key achievements of the stablecoin market leaders as of July 2024:
- Tether (USDT) cap grew by 1.61% to $116 billion, and USDT’s market dominance increased to 69.6%.
- USD Coin (USDC) cap grew by 5.4% to $33.6 billion. USDC trading volume on CEXs almost doubled during the month, reaching $135 billion by July 25. The catalyst for the asset’s growing popularity was the MiCA bill coming into force in the EU. USDC is now the only stablecoin approved by local regulators.
USDT’s popularity is also reflected in its issuer’s reports. According to Tether’s Q2 2024 Attestation Report, the company saw a record profit of $5.2 billion, with a net operating profit of $1.3 billion. Tether also informed about $5.33 billion in excess reserves.
The stablecoin market is also developing through the release of innovative financial products. DeFi project Ondo Finance recently introduced Ondo US Dollar Yield (USDY), a dollar-based stablecoin launched on the Aptos blockchain. It’s backed by the U.S. Treasury bonds and offers a yield of 5.3% APY. The developers, however, clarified that the asset isn’t available to U.S. residents as it wasn’t properly registered with the SEC.
USDY isn’t the first stablecoin with unique support mechanisms. Earlier, Tether introduced a synthetic stablecoin Alloy (aUSDT) backed by gold.
