The stablecoin market has increased from $29 billion to $140 billion in 2021.
According to a report from analyst firm The Block, the stablecoin market surged by 388% or $111 billion during the year. Even regulatory pressure on Tether and Circle, issuers of the largest stablecoins by capitalization, did not affect the positive dynamics.
Among the main growth drivers, analysts noted the active development of the crypto derivatives market and the DeFi segment. Tether (USDT) remains the largest stablecoin, with a capitalization of ~$77,46 billion. USDT is the fourth biggest cryptocurrency by market cap and the first largest by daily trading volume — over $64 billion, according to CoinGecko as of December 21, 2021.
USD Coin (USDC) is the second largest stablecoin by capitalization, with Binance USD (BUSD), Dai (DAI) and Pax Dollar (USDP) also in the top 5. Future growth points for the stablecoin market are cited by analysts as the CeFi sphere and increased use of stablecoins by businesses. A recent U.S. Congressional hearing on the use of stablecoins acknowledged that U.S. citizens are actively seeking alternatives to the traditional banking system, which are stablecoins and other crypto instruments.