The stablecoin market has been experiencing a resurgence, with its total market capitalization nearing the all-time highs reached before the Terra Luna collapse. Over the past five days alone, the market has expanded by $1.3 billion, driven primarily by the growth of Tether (USDT).
Tether, the largest stablecoin by market capitalization, saw its supply increase by a substantial 820 million during this period. This surge has propelled its market cap from $116.88 billion to the current $117.70 billion. Since the beginning of the year, USDT’s market cap has grown by a remarkable $25.96 billion.
Other stablecoins are also experiencing significant growth. First Digital’s FDUSD, for example, added 280 million to its supply in just one day. Over the past week, 710 million FDUSD has been added to the market.
Paypal’s PYUSD, the sixth-largest stablecoin by market cap, is also on the rise. It is approaching the $1 billion mark for the first time, with its market cap currently standing at $981.69 million. In the past 24 hours, more than 15 million PYUSD tokens were issued, and in the last week, its supply grew by 190 million more tokens.
Also Read: Tether Going On A Spending Spree? $1B More USDT Minted On Tron
Aave’s GHO also saw modest growth, with a $4 million increase over the past week. While some stablecoins experienced growth, others saw reductions, resulting in a net increase of $1.3 billion over the past 120 hours.
As the stablecoin market continues to expand, it is becoming increasingly clear that these digital assets are playing a crucial role in the broader cryptocurrency ecosystem. Their ability to maintain a stable value relative to fiat currencies provides a much-needed sense of stability and security for investors and traders alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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