Number Of Stablecoin Holders Nears 100 mn Mark, Data Show
Stablecoins have gained popularity, with the number of addresses holding dollar and crypto-pegged stablecoins rising 15% this year to above 93.6 million. There are 35 stablecoins in existence, with Tether (USDT) holding
just over 80% of the total addresses.
The Fed raised interest rates in 2022, boosting investor demand for U.S. dollar and greenback-equivalents like dollar-pegged cryptocurrencies.
The number of addresses transferring stablecoins has also increased, with active stablecoin addresses surpassing 26 million for the first time on record in March.
Nearly 20 million, or 77%, were based on TRON and Binance Smart Chain (BSC), largely representing retail investor participation.
Ethereum and its rival Solana accounted for a significant share of the transfer volume due to their large decentralized finance ecosystem.
A 2022 Federal Reserve report suggested stablecoins could be used for cross-border payments, internal fund transfers, and liquidity management within firms. Regulatory clarity is likely to encourage banks to adopt stablecoins, with U.S. Senators Cynthia Lummis and Kirsten Gillibrand introducing a joint bill on regulating stablecoins.
(With inputs from Shikha Singh)
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