A recent report from CCData has revealed that the market capitalization of stablecoins has reached its highest level since April 2022, after experiencing continuous growth for eight months. The analytics platform for cryptocurrencies reported on May 29th that the stablecoin market cap had increased by 0.63% since the beginning of the month, reaching a total of $161 billion. However, the market dominance of stablecoins slightly decreased from 7% in March to 6.07%.
Among the top ten stablecoins, Athena USDe’s market cap has seen a steady increase for the fifth consecutive month, rising by 11.6% to $2.61 billion. This growth is attributed to its expanded usage as collateral for perpetual trading on Bybit.
Tether (USDT), the largest stablecoin in terms of market cap, has reached an all-time high market cap of $111 billion as of May 29th, thereby increasing its dominance in the stablecoin market to 69.3%.
The tokenized fund token BUIDL from BlackRock has experienced a significant surge of 19.6% to $448 million, making it the largest tokenized treasury fund, surpassing Franklin Templeton’s BENJI. BUIDL represents a share in BlackRock’s USD Institutional Digital Liquidity Fund and can be exchanged for USDC on a 1:1 basis.
Circle’s USDC (USDC) has also witnessed an increase in market capitalization for six consecutive months, reaching $32.6 billion in May. This growth aligns with the rising demand, as USDC pairs recorded an all-time high monthly trading volume in March. The market share of USDC by trading volume has increased for the second month to 8.27%.
The report also highlights the increased on-chain trading activity of USDC on networks such as Base and Solana, with the percentage of USDC supply on these chains reaching 9.29% and 7.78% respectively.
Despite the growth in market capitalization, the trading volumes of stablecoins on centralized exchanges dropped to a monthly low of $829 billion on May 23rd. The report mentions that trading activity on centralized exchanges tends to decline in the two months following the Bitcoin halving event.
Overall, the CCData report concludes that the total market capitalization of stablecoins has now recovered from the losses incurred since the collapse of the Terra Luna ecosystem and the significant depegging of the algorithmic stablecoin TerraClassicUSD (USTC), which initiated a seventeen-month downtrend.
It is important to note that this article does not provide investment advice or recommendations. It is crucial for readers to conduct their own research and analysis before making any investment or trading decisions.