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Stablecoins Surge Past $200 Billion Cap, Signalling Potential Crypto Market Growth
- Under President Trump, stablecoins have seen significant growth with their market capitalisation increasing by nearly US $40b since November.
- The stablecoin market reached an all-time high over the weekend, driven almost exclusively by USDT and USDC.
- Tether remains the most popular stablecoin, but USDC is starting to make its move, with a 48% increase in market cap over the past quarter.
- The impressive growth among stablecoins has been centred upon USDC and USDT, with the rest of the market lagging.
Stablecoins – digital currencies tied to the price of an underlying asset – have experienced a stellar time under new US President Donald Trump.
The market capitalisation for these assets has grown by nearly US $40b (AU $65b) since the Republican administration was voted in last November.
The trend reached its zenith over the weekend, as the stablecoin market ballooned over US $200b (AU $324b), recording an all-time high.
Related: Mini Financial Crisis Will Force 30% BTC Correction, Predicts Arthur Hayes
Exchange Holdings of Stablecoins Explode as USDC Closes Gap
The heaviest winners were the big dogs of USD-pegged stablecoins – USD Tether and USDC. These two assets have long sat inside the top ten digital assets by market cap, but have taken things to another level over the past few months.
Tether’s stablecoin has historically been the most popular among investors, and its dominance has remained intact as its market climbed 15% since Trump’s election.
Despite this, USDC is making up clear ground, with Circle’s MiCA-compliant stablecoin gaining 48% over the same timeframe.
While Tether’s market cap still dwarfs USDC’s, the gap is slowly closing as institutional investors move toward assets with greater regulatory oversight.
Stablecoin Market Cap Surges 81% on Back of Two Coins
The ATH caps off an 18-month surge in stablecoin liquidity. Since August 2023, the market has nearly doubled (from US $121b to $220b).
Pegged assets are often linked with a thriving crypto market, as their growth suggests an active investor base.
That said, further analysis reveals that most stablecoin growth has been isolated to USDC and USDT. Alternatives haven’t really captured the market as some have hoped – although the introduction of RLUSD may be the catalyst for further expansion in the pegged asset industry.
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