Stablecoin Market Capitalization Hits $138 Billion as Volume Grows by 4.5% this Month
Stablecoin Market Capitalization Hits $138 Billion as Quantity Grows by 4.5% this Month
The stablecoin market capitalization has soared 1.95% to hit $138 billion in February recording a fifth consecutive month-to-month progress since September 2023.
A novel market file by cryptocurrency analytics firm CCData exhibits a stablecoin market capitalization and trading quantity upward thrust.
Stablecoin quantity on CEXs rose 4.54% to $1.05tn in January, its highest stage since December 2021.
Particularly, $FDUSD’s market share persisted to upward thrust in January, reaching 15.6%, aided by the reputation of the BTC-FDUSD pair on Binance.
Fleshy Myth: https://t.co/uR1uf3BuaZ pic.twitter.com/zs2LxbkFGz
— CCData (@CCData_io) February 22, 2024
Fixed with the launch, the stablecoin market capitalization breached $138 billion as of February 16, with indices showing a stronger performance in direction of the stay of the month.
The growth marks a fifth consecutive month invent bigger for the reason that stay of Q3 2023 with high inflows into the cryptocurrency market. This influx has pushed stablecoins to their highest point for the reason that originate of 2023.
On the identical time, stablecoin trading quantity grew in the first two months of 2024. Trading volumes hit 1.04 trillion in January, marking the best quantity point on centralized exchanges (CEX) since December 2021.
Stablecoin Dominance Drop Continues
The file hinted at a increased resolve this month as a end result of $440 billion in trading quantity recorded as of February 16. Even supposing stablecoins seen rising figures and actions, their total market dominance plunged from 8.15% to 7.09% this month.
The decline in dominance in February is its sixth straight month of diminished total market power in contrast with different cryptocurrencies. This came on the heels of the gigantic influx into different cryptocurrencies, rising their market cap to $1.97 trillion as institutional inflows came into the market.
Tether (USDT) maintains its lead on the stablecoin market with its market cap hitting $97.3 billion, a 1.23% upward thrust in the last 30 days. This progress locations USDT dominance at 70.6%, followed by USDC and DAI.
“The market capitalization of USD Coin (USDC) rose for the third consecutive month, rising 5.34% to $26.9bn, recording the best market capitalization since June 2023. In the intervening time, the market capitalization of First Digital USD (FDUSD) rose 12.5% to $2.44bn, recording a unique all-time high for the stablecoin,” the file neatly-known.
CBDC Pattern Grows Alongside Stablecoin Market Capitalization
Because the stablecoins market capitalization rose, use cases for Central Bank Digital Currencies (CBDC) grew, with passion recorded in so much of jurisdictions.
Countries with existing pilot projects additionally explored unique use cases. On January 31, the Bank of Japan held the first digital yen meeting, with more actions in different regions.
“In the intervening time, the Sri Lankan Central Bank announced plans to explore a CBDC to give a lift to the nation’s financial inclusion and complement money use, with executives eyeing the stay of 2024 as a doable launch date,” the file added.
Several justifications had been given for CBDCs, including to give a lift to ghastly-border payments amid the mass adoption of cryptocurrencies, up to now two years. Nonetheless, many contributors and organizations beget flagged privateness concerns in most CBDC objects.
Final 365 days, two European Union recordsdata privateness agencies warned of a imaginable risk animated CBDCs, fit example. Even supposing executive officials downplayed concerns, protection watchers beget additionally raised an identical concerns globally.
Source : cryptonews.com
