Stablecoin Market Capitalization Reaches Record $168 Billion

The combined market capitalization of stablecoins has reached a new all-time high of $168 billion, marking an 11-month streak of growth.

And just like that, we’re at a new all-time high.

Total stablecoin market cap, excluding algorithmic stables, is now at the highest point ever, surpassing its previous high from early 2022.

New money is entering crypto. pic.twitter.com/xi25HLWlPr

— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) August 25, 2024

Crypto analyst Patrick Scott (Dynamo DeFi) interpreted the trend as a sign of “new money entering crypto.”

The expert expressed confidence that the inflows are driven by retail rather than institutional investors.

The previous peak in the sector’s capitalization was recorded in March 2022 at $167 billion. By the end of that year, the metric had fallen to $135 billion. These figures exclude algorithmic stablecoins.

USDT remains the leader among “stable coins.” Since the beginning of the year, its capitalization has grown from $91.69 billion to over $117 billion.

During the same period, the combined market capitalization of USDC increased to over $34 billion. The metric’s peak in June 2022 was $55.8 billion.

According to CCData, stablecoin trading volume in July decreased by 8.35% to $795 billion, due to reduced trading activity on centralized exchanges. 

Analysts suggest that concerns about the future of USDT in Europe following the launch of MiCA might be one of the reasons.

Earlier, Bernstein estimated the stablecoin market to reach $2.8 billion in five years.