The global stablecoin market has reached unprecedented levels, with its total supply surging to approximately $191.6 billion. Tether (USDT) and USD Coin (USDC) continue to dominate the market, accounting for a combined market share of nearly 90%.
A Year of Growth for Stablecoins
Data from DefiLlama highlights a significant 46% increase in the market capitalization of stablecoins this year. Since January 2024, the sector’s value has risen by over 50%, reflecting consistent growth over the past 12 months.
Defillama
The broader cryptocurrency market has also grown substantially, with a notable rise following President-elect Donald Trump’s favorable stance on digital assets. Bitcoin has surged past $99,000, while the total cryptocurrency market value has grown by $0.88 trillion since Trump’s election victory.
Stablecoins, in particular, are increasingly viewed as key to enhancing global trade, particularly in cross-border transactions.
Tether has made strides in this area, recently facilitating its first crude oil transaction in October 2024. The deal, conducted by Tether’s investment division, involved a leading oil company and a major commodity dealer, signaling a growing use case for stablecoins in traditional trade.
USDT Leads Global Supply
USDT, Tether’s primary product, remains the dominant player, facilitating seamless crypto transactions across multiple blockchain networks, including Ethereum, Solana, Tron, and Polygon.
USDT’s circulation has reached $133 billion, representing 69% of the market. USD Coin, issued by Circle, holds a 21% market share, with its value rising to $39.5 billion—up from $24 billion at the end of 2023.
USDT market cap. DefiLlama
This expansion contrasts sharply with the market’s decline in 2022 when the collapse of TerraUSD contributed to a $19 billion drop in the sector’s value. Since then, stablecoins have rebounded, surpassing $170 billion by August 2024.
However, as CryptoMode reported, the firm announced 27 its decision to discontinue its euro-pegged stablecoin, EURT, citing evolving European regulatory frameworks, particularly the EU’s Markets in Crypto Assets (MiCA) law. MiCA, introduced in 2023, establishes guidelines for the region’s stablecoins and other crypto assets.
While discontinuing EURT, Tether reaffirmed its commitment to MiCA-compliant projects, including Quantoz Payments’ EURq and USDq stablecoins. These are supported by Tether’s Hadron technology and involve partners like Kraken and Fabric Ventures.