Stablecoin Market Surges $9.7 Billion in 14 Days, Nearing Historic High

The stablecoin market has seen a big influx of capital, up $9.736 billion in the last 14 days. 5.63% growth to $182.628 billion as of November 16, 2024. Still $5.246 billion away from the all time high of $187.874 billion on April 24, 2022.

Stablecoins are now 5.96% of the $3.06 trillion crypto market, showing how important they are to crypto liquidity and stability. This recent growth is a sign of growing demand for fiat pegged digital assets as the market gets more volatile and investors get more interested.

USDT and USDC Dominate the Landscape

Tether’s USDT is the largest stablecoin with a market cap of $127.749 billion, 69.95% of the sector. Circle’s USDC is second with a $36.906 billion valuation, 20.21% of the market. Together they control almost 90% of the stablecoin market, no surprise.

Other top 5 stablecoins are MakerDAO’s DAI ($4.649 billion), Ethena’s USDE ($3.167 billion) and First Digital’s FDUSD ($2.287 billion). FDUSD has grown significantly thanks to being listed on Binance and has big 24 hour trading volumes despite being a relatively small market cap.

Lessons from Past Peaks

The stablecoin market’s previous peak was during the rise and fall of Terra’s UST stablecoin, whose collapse was a big shock to the crypto world. This is a lesson to be learned, as the stablecoin market gets closer to all time highs.

USDT and USDC trading dominance and niche players like FDUSD activity suggests the market is still very fiat pegged asset dependent for liquidity and risk management.