Stablecoin Trading Volume Soars To A Record $1.81 Trillion
By Vishakha Thakur
Riding on the wave of increased adoption in the digital assets sector, trading volume for stablecoins was up by 77.5% to $1.81 trillion in the month of November. In fact, the total market capitalization of stablecoins has risen by over 9% to hit a record high of $190 billion, exceeding the April 2022 high of $188 billion.
This impressive surge is attributed to the fact that, being pegged to a fiat currency like dollar, stablecoins are a relatively safer option for investors.
Moreover, since stablecoins open the doors for on-ramp and off-ramp pathways for investors i.e. from fiat to crypto and vice versa, growing investor appetite has seen increased flow of stablecoins to crypto exchanges. No wonder, stablecoin inflows to crypto exchanges recently hit a new monthly high of more than $9.7 billion.
Talking about the top performers, Tether’s USDT leads the stablecoin sector with up to 70% dominance. Tether’s market cap grew roughly 10.5% and hit $133 billion in the month of November.
Circle’s USDC is not behind in the list with its market cap rising by almost 12% and reaching $38.9 billion, its highest level since February 2023.
Simultaneously, Ethena Labs’ USDe recorded a 42.2% growth to $3.86 billion, driven by heightened interest in Ethena’s ecosystem as well as Ethena’s proposal to activate revenue sharing for token holders.
This overall rise in the numbers is also because traders are invoking diversified strategies seeking stable returns through high-annual percentage yield offerings such as Ethena’s USDe.
As per CCdata, the outlook for stablecoins remains bullish as institutional participation grows and ecosystems expand their offerings.
However, the market dominance of stablecoins dropped to 5.54% from 7.22% in the month of October as traders diversified into Bitcoin and altcoins to capitalise on the ongoing bull run.
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