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 its peak on August 30, but is expected to rebound as token prices continue to rise.
Over the past 60 days, the decrease in stablecoin supply is related to the decline of PayPal’s PYUSD, which has received liquidity incentives through various Solana DeFi protocols.
At its peak, PYUSD had an annual yield close to 20% on Kamino Finance, but now it is only 7.9%. However, in the long term, compared to the 100-fold increase in stablecoin supply since early 2019, this decrease in supply seems insignificant.
Currently, the total market value of stablecoins is $170.93 billion.


Euro-pegged stablecoins are on the rise, with Circle’s EURC supply increasing by over 40% in the past month.
Base has become a major beneficiary network, with EURC’s value on the chain increasing from $22 million to $48 million. This is consistent with Coinbase’s efforts to comply with MiCA regulations, as Coinbase sees this as a differentiating advantage over competitors.


Banks have always been reluctant to issue stablecoins.
However, the EURCV issued by France’s Societe Generale is an Ethereum-based stablecoin, currently the only stablecoin issued by a bank, which has increased by 11% this month, reaching a market value of $41.7 million.
Societe Generale also announced plans to launch EURCV on Solana. This move, along with the stablecoin partnership between BBVA and Visa, suggests that banks may eventually become more actively involved.


Trade Focus: Bridge, acquired by payment giant Stripe this week, is not the only fast-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 issues 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 reached close to $200 billion during the active market period at the end of 2022.
Although Ethereum still holds the largest share of trading volume, since 2023, Layer 2 solutions like Arbitrum have gradually taken up more share. Trading patterns show cyclical behavior, with a peak occurring approximately every 3 to 4 months, indicating regular active periods in the market.
While trading volume has decreased compared to 2022, the current level of about $80 to $100 billion is significantly higher than before 2021.


Daily transaction activity has surged from less than 2 million transactions per day at the beginning of 2021 to over 20 million by the end of 2023, with significant growth in the fourth quarter on Arbitrum, Base, and Solana.
Layer 2 and other chains are attracting more trading activity, weakening Ethereum’s dominance. The current daily volume of about 12 million transactions indicates the maturity of the entire ecosystem.


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


Trade 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 the massive funds all to Binance 76. In addition, 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 to date.
The growth rate of Tether is accelerating – 36 million accounts were added in the third quarter, the best quarter performance for this stablecoin giant so far.


In the first 6 months, the issuance of USDT on the TON chain reached 768 million, making it the fastest-growing stablecoin on all chains so far.


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 contrast, this proportion 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