The crypto market has sustained remarkable growth since the beginning of the year, with the stablecoin sector showcasing significant expansion.
According to DeFiLlama, the stablecoin supply has surged by nearly $20 billion since the year’s outset, reaching over $150 billion. This marks the highest level observed since the collapse of FTX in November 2022.
Why Stablecoin’s $150 Billion Surge Since January Matters
Stablecoins are a crucial bridge between the crypto market and conventional fiat currencies. Given their prevalence and popularity among traders, stablecoins significantly influence liquidity. Therefore, the recent uptick signifies a prevailing optimism within crypto markets, indicative of increased capital infusion.
Tether’s USDT remains the frontrunner having recently surpassed $100 billion in market capitalization. Its growth trajectory persists, now standing at approximately $104 billion.
Concurrently, Circle’s USDC is undergoing a resurgence amid prevailing market conditions. Expanding its presence across various blockchain networks, its supply has surged to $32 billion, reflecting heightened activity and investor confidence.
Interestingly, the supply surge has led to a notable uptick in trading volume across various assets. According to data from the crypto analysis platform CCData, trading volume for stablecoins saw a 5.14% increase, reaching $1.09 trillion in February. This marks the highest trading volume for stablecoins on centralized exchanges (CEXs) since December 2021.
Moreover, CCData predicts that March will surpass this figure, with trading volume already hitting a substantial amount by mid-month.
