#

Stablecoin Market Capitalization Soars to 11-Month High, Taps $134 Billion

The stablecoin market capitalization has surged to its highest point in 11 months with increased network activity recorded at the start of the year.

A recent market research by cryptocurrency analytics firm, CCData shows an increase in the stablecoin market as the wider digital asset market recorded an uptick in market share, volumes, and institutional inflows.

This month, the market cap of stablecoins has notched a 2.45% increase to tap $134 billion, its highest point since February 2023. This is also an eleven-month high and a fourth consecutive month marking an increase.

Stablecoin trading volumes stood at $995 billion in December, a 27.6% increase in the month to claim the highest activity across centralized exchanges (CEX) throughout the year.

Stablecoins See Positive Supply Growth For First Time in More Than a Year: Glassnode Data

Money is flowing into the crypto market through #stablecoins, marking the first positive supply growth in over a year.#CryptoNews #newshttps://t.co/MdS1XLG1yj

— Cryptonews.com (@cryptonews) November 15, 2023

ETF optimism fuels market uptick


The report tips January volumes to beat December as on-chain shows trading volume has already hit $579 billion as of Jan 10 with twenty days to go and an approval of a spot Bitcoin (BTC) ETF by the United States Securities and Exchange Commission (SEC).

Months leading up to the approval of spot BTC ETF were characterized by wide market projections as institutional investors continued to trickle in increasing their exposure to digital assets.

It has long been stated that stablecoins due to their balanced nature are not subject to volatility like Bitcoin and other altcoins making them preferable for certain institutional investors.

Stablecoins are also used for means of entry and exit to the cryptocurrency market recording increased numbers whenever there is a renewed institutional appetite.

The movements around the market leader and altcoins led to a fall in stablecoins market domination marking the fifth consecutive month of decline.

Stablecoin market dominance declined to 7.78% from 7.82% in December. USD Tether continues to to lead the pack in terms of trading volumes and market capitalization as it boasts of 70.8 market share of the top 10 stablecoins.

Meanwhile, FDUSD surpassed USDC in terms of trading volume with an 8.96% market share in January while the latter posted an 8.43% of the total stablecoin volumes.

PYUSD which got much traction on its launch posted an 11.2% growth with a market capitalization of $260 million in January breaking into the top ten stablecoins for the first time.

Central Banks scale up CBDC research


The report also highlighted key developments recorded around Central Bank Digital Currencies (CBDCs) like the Bank of Spain’s selection for CDBC testing, Turkey’s phase two trials, and the Chinese crackdown on the first CBDC money laundering case.

“In January, updates on Central Bank Digital Currencies (CBDCs) were relatively quiet. Major developments included the Eastern Caribbean Central Bank and the European Central Bank issuing calls for vendors for their respective CBDCs, DCash and the Digital Euro.”

Furthermore, the European Central Bank would increase development on works for offline transactions with the digital Euro as well as plans by the Reserve Bank of India to explore faster and cheaper cross-border payments with CBDCs.

The post Stablecoin Market Capitalization Soars to 11-Month High, Taps $134 Billion appeared first on Cryptonews.

Generated by Feedzy