The total supply of dollar-pegged stablecoins has exceeded $100 billion. Much of this growth was driven by the two largest stable stablecoins, USDT and USDC.
The total supply of dollar-pegged stablecoins has exceeded $100 billion, according to data from The Block. As of publication time, the total stablecoin supply reached $100.33 billion.
Although the market share of USDC has increased rapidly in recent weeks, Tether has a 62% market share, while USDC has a market share of 21%. Late last year, USDC’s market share was less than 10%.
Most of the Stablecoin growth has taken place in recent months, as can be seen from the charts above. For example, at the beginning of this year, the total stablecoin supply was only around $30 billion.
The solid growth in Stablecoins shows that cryptocurrency market participants are increasingly using funds, including in areas such as derivatives and decentralized finance (DeFi). While derivative traders often use stablecoin as collateral, DeFi users use stablecoin to trade and lend money to earn returns.
Stablecoins allow cryptocurrency market participants to trade faster without having to wait for days compared to fiat money transfers. Also, not all cryptocurrency exchanges support fiat currencies, leaving stablecoins and other cryptocurrencies as the only solution for trading cryptocurrencies.
The increased use of Stablecoins has attracted the attention of global regulators, including the USA. For example, members of the US Congress have proposed the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act. If the bill were to become legal in its current form, it would require all stablecoin issuers to have bank licenses. The offer declares stablecoins to be a kind of guarantee under federal law.