- Stablecoins hit a $161B market cap, a 2-year high, led by USDT’s record $111B.
- USDC market cap grows to $32.6B amid increased trading volumes.
- Despite a market cap rise, trading volumes on exchanges dropped to $829B.
In a sustained growth trajectory, the market capitalization of stablecoins has touched a two-year peak at $161 billion as of May 2022. This milestone follows eight months of consistent upward movement, marking a significant rebound since the Terra Luna financial debacle.
Read CRYPTONEWSLAND on
google news
Despite the overall market cap surge, stablecoins’ dominance has seen a modest decline to 6.07%, compared to 7% in March. This decrease mirrors the broader recovery across major cryptocurrency assets, notably after the U.S. greenlighted a spot Ethereum ETF.
Amidst these shifts, Tether (USDT) has not only maintained its leading position but has also achieved a record market cap of $111 billion, accounting for 69.3% of the stablecoin market’s total value.
Athena USDe, another prominent stablecoin, reported an 11.6% increase in market cap, reaching $2.61 billion. This growth is largely attributed to its expanded role as collateral in perpetual trading platforms like Bybit.
Emerging Trends and Market Adjustments
Conversely, trading volumes on centralized exchanges have tapered off, settling at a monthly low of $829 billion by May 23. Analysts associate this downturn with the cyclic impact following Bitcoin’s halving event, which traditionally led to a temporary slowdown in trading activities.
Moreover, Circle’s USDC has seen a consistent increase in its market cap, which stood at $32.6 billion in May. This uptick is supported by heightened trading volumes and the growing adoption of blockchain networks such as Base and Solana. As a result, USDC’s market share by trading volume climbed to 8.27%.
Overall, the data from CCData underscores a robust recovery in the stablecoin sector, signifying a steady regain of investor confidence and market stability following past uncertainties. The current landscape of the cryptocurrency market, especially within the realm of stablecoins, reflects a complex interplay of growth, adoption, and market adaptability.
Read Also:
disclaimer read moreCrypto News Land (cryptonewsland.com)
