Stablecoins Market Cap Soar to New All-Time High After Eleven Months of Steady Growth
Stablecoins are not popular among crypto investors looking for rapid gains and high returns. However, Stablecoins have gained significant traction despite this, with market valuation hitting new highs recently.
On-chain data shows that stablecoins' market capitalization has hit a new all-time high at $168 billion after eleven months of consistent growth. However, this data does not include algorithmic stablecoins that rely on mechanisms rather than being begged to assets like the dollar.
The current value surpasses 2022, when the stablecoin market cap hit an all-time high of $167 billion in March 2022 before declining to $135 billion.
Stablecoins Market Cap Hits New All-Time HighAnalytical platform DefiLlama reveals that the stablecoin market cap is currently valued at $168 billion, the highest in history. USDT contributes the largest share of this valuation, with a market dominance of 70.09%.
Crypto analyst Patrick Scott said the rise in the stablecoin market cap implies that new money is entering crypto. He noted that the total stablecoin market cap, excluding algorithmic products, is now at the highest point ever.
And just like that, we're at a new all-time high.
Total stablecoin market cap, excluding algorithmic stables, is now at the highest point ever, surpassing its previous high from early 2022.
New money is entering crypto. pic.twitter.com/xi25HLWlPr
- Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) August 25, 2024
Although Scott did not reveal details, he noted that retail traders have been in good form for at least the past eight months.
Retail has been in in some form for at least 8 months.
- Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) August 25, 2024
USDT hit a market cap of $91.69 billion at the beginning of 2024. It currently boasts a market cap of $117 billion, confirming its status as the top Stablecoin.
Circle's USDC has risen to a market cap of $34 billion, representing its highest value in 2024. However, USDC's current market cap value is still below its June 2022 all-time high of $55.8 billion.
A report by CCData reveals that stablecoin trading volumes declined by 8.35% to $795 billion in July. The decline resulted from lower trading activity on centralized exchanges and persisted in August.
This report raises concerns about the Market in Crypto-Assets (MiCA) regulations that could affect USDT operations in Europe. In July, the MiCA regulations led to a decline in stablecoin trading activity on centralized exchanges (CEXs).
CoinMarketCap reveals that the low trading volume trend for stablecoins persists in August. The stablecoin market had a trading volume of $50 billion.
Trader Shares Logic Behind Stablecoin RallySeasoned trader Crypto Cred reacted to Patrick Scott's comments on stablecoins. Cred revealed that most people who realized and kept much money in crypto survived long enough to make it.
He noted that it does not take much to make it in crypto; a specific coin, new launch, news event, or trend could be beneficial. Cred believes those who want to make it in crypto must reduce risk exposure, such as trading without stopping loss.
Most people who made and kept a lot of money in crypto simply survived and stuck around long enough to hit a few big wins.
A specific coin, trend, meta, rotation, liquidation cascade, new launch, arb, news event, and so on.
It doesn't take much.
In order to survive and be...
- Cred (@CryptoCred) August 25, 2024
Also, investing in a single coin or position and keeping all funds on a single exchange or wallet is not ideal. Cred urged followers to reduce the size of their biggest losing trades.
Further, Crypto Cred insisted that all trading must be executed with a plan and not overleveraged to avoid a potentially significant loss.Cred shared these insights with over 600,000 followers on X as a strategy to benefit from stablecoins and other assets.
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