A recent report by CCData has revealed that the stablecoin market capitalization has reached its highest level since April 2022, following a consistent growth over the past eight months.
According to the cryptocurrency analytics platform, the stablecoin market cap increased by 0.63% since the beginning of the month, reaching a total of $161 billion. However, the market dominance of stablecoins slightly decreased to 6.07%, down from 7% in March.
Among the top ten stablecoins, Athena USDe’s market cap has seen a continuous growth for the fifth consecutive month, with an increase of 11.6% to $2.61 billion. CCData attributes this rise to the expanded use of Athena USDe 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 29, further solidifying its dominance in the stablecoin market with 69.3% market cap dominance.
Another notable development is the surge in BlackRock’s tokenized fund token BUIDL, which has increased by 19.6% to $448 million. This makes 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 swapped to USDC on a 1:1 basis.
Circle’s USDC (USDC) has also witnessed a consistent increase in market capitalization for the sixth consecutive month, reaching $32.6 billion in May. This rise in market cap aligns with the growing demand for USDC, as USDC pairs recorded an all-time high monthly trading volume in March. USDC’s market share by trading volume has also risen for the second month to 8.27%.
The report highlights that USDC has benefited from increased on-chain trading activity on networks like Base and Solana, with the percentage of USDC supply on these chains rising to 9.29% and 7.78%, respectively.
Despite the increase in market cap, stablecoin trading volumes on centralized exchanges experienced a decline, reaching a monthly low of $829 billion on May 23. The report attributes this decline to the historical trend of decreased trading activity on centralized exchanges in the two months following the Bitcoin halving event.
Overall, the CCData report concludes that the total market capitalization of stablecoins has recovered from the losses incurred due to the collapse of the Terra Luna ecosystem and the depeg 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. Readers should conduct their own research and analysis before making any investment or trading decisions.