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

The total market value of stablecoins reaches $170 billion


Global stablecoin supply has decreased by 2.7% since the peak on August 30, but with the continued rise in Token prices, it is expected to rebound.
Over the past 60 days, the decrease in stablecoin supply is related to the decline of PYUSD by PayPal, which has received liquidity incentive support through multiple Solana DeFi protocols.
At its peak, the annual yield of PYUSD on Kamino Finance was close to 20%, but now it is only 7.9%. However, in the long run, compared to the 100-fold increase in stablecoin supply since the beginning of 2019, this decrease in supply seems insignificant.
Currently, the total market value of stablecoins is $170.93 billion.


Euro-anchored stablecoins are on the rise, with Circle’s EURC supply growing by over 40% in the past month.
Base has become the main beneficiary network, with the value of EURC on the chain increasing from $22 million to $48 million. This is consistent with Coinbase’s efforts to meet MiCA compliance, viewing it as a differentiating advantage from competitors.


Banks have always been reluctant to issue stablecoins.
However, the EURCV issued by Crédit Agricole is an Ethereum-based stablecoin and is currently the only stablecoin issued by a bank, with a 11% increase this month and a market value of $41.7 million.
Crédit Agricole also announced plans to launch EURCV on Solana. This move, along with the stablecoin partnership between BBVA and Visa, indicates that banks may eventually be more actively involved.


Transaction Focus: Bridge, acquired by payment giant Stripe this week, is not the only rapidly growing stablecoin business.
Increasing Token holders and transfer activities indicate growing adoption of Sling Money. Sling Money is a cross-border payment application built using the USDP stablecoin issued by Paxos, which also issued PayPal’s PYUSD on Solana.
Since early June, the number of USDP Token holders on Solana has increased from 33 to 1212, while the monthly transfer volume has increased from $111,426 to $839,199.
USDC
Anthony Loya
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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 at the end of 2022 due to market activity.
Although Ethereum still dominates the largest share of trading volume, Layer 2 solutions like Arbitrum have gradually gained more share since 2023. Trading patterns show periodic behavior, with a peak occurring approximately every 3 to 4 months, indicating a regular active period in the market.
While trading volume has decreased compared to 2022, the current level of around $800 to $1,000 billion is significantly higher than before 2021.


Transaction activity surged from less than 2 million transactions per day at the beginning of 2021 to over 20 million transactions per day by the end of 2023, especially in the fourth quarter on Arbitrum, Base, and Solana.
Layer 2 and other chains are attracting more transaction activity, weakening Ethereum’s dominant position. The current daily volume of approximately 12 million transactions indicates maturity of the entire ecosystem.


USDC transactions show distinct characteristics on different blockchains. Solana leads in total transaction volume, mainly used for small transactions under $100, while Ethereum dominates in large transactions exceeding $1 million.
Layer 2 solutions mainly handle medium-sized transactions ranging from $1,000 to $100,000, indicating users choose different chains based on transaction amounts and costs.


Transaction Focus: Users are not afraid to make large USDC transfers on Ethereum Layer 2. For example, a $102,616,661.02 USDC transfer was sent to Base.
The sender transferred this huge amount of funds to Binance 76. Additionally, the gas fee for this transaction was only $0.002528.
USDT
Henry Child
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Tether is growing rapidly: Added 36 million accounts in the third quarter of 2024, setting a record for the best quarter performance.
The growth rate of Tether is accelerating – 36 million accounts were added in the third quarter, the best quarter performance for this stablecoin giant to date.


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


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


This article is a collaboration reprint from:
Deep Tide