Stablecoin Market Hits 14-Month High

The overall market value of stablecoins has surpassed $140 billion for the first time since December 2022, according to DeFiLlama data. This surge, as highlighted by senior analyst Vetle Lunde from K33 Research, reflects the inflow and outflow of funds within the crypto ecosystem. With fresh capital continuing to pour into the crypto market this year, the stablecoin market is expanding, propelling asset values upward.

The stablecoin market began rapidly expanding in early November, breaking an 18-month downtrend. Since then, its capitalization has grown by 12%, or $15 billion, with a year-to-date increase of approximately $10 billion.

Tether's USDT, the largest stablecoin by market capitalization, has added $2 billion in the last month alone, reaching a new high of $98 billion. Meanwhile, the second-largest stablecoin, USDC by Circle, has surged by $2.5 billion, surpassing $28.5 billion in market cap.

One factor contributing to the surge in USDC's capitalization could be the high demand for Bitcoin among US investors, where Circle's coin is more popular. Additionally, USDT dominates in Asia, Africa, and Latin America among traders on offshore exchanges like Binance.

Coinbase's report indicates that USDC is gradually expanding its presence beyond the US markets. The asset's share in derivatives and spot trading on global centralized exchanges (CEX) has reached nearly 4%, compared to less than 1% in mid-2023.