Stablecoin Market Cap Hits Record High of $168 Billion After 11 Months of Growth
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
The stablecoin market has seen its total capitalization soar to a record $168 billion after 11 months of consistent growth.
According to data from DeFiLlama, the $168 billion market cap marks a new all-time high, surpassing the previous peak recorded in March 2022.
The figures notably exclude algorithmic stablecoins, which maintain their value through algorithmic mechanisms rather than being backed by external assets like fiat currency or gold.
The market had previously peaked at $167 billion in March 2022 but saw a sharp decline later that year, falling to $135 billion by the year’s end.
Crypto analyst Patrick Scott, known in the industry as “Dynamo DeFi,” noted that the increasing market cap of stablecoins have positive impacts on the crypto market.
“New money is entering crypto,” he wrote on X in response to the market cap milestone.
“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.”
While Scott did not provide specific reasons for the market’s resurgence, he noted that retail participation has been present for at least eight months.
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
Tether (USDT), the leading stablecoin, has played a pivotal role in this growth. At the start of 2024, USDT had a
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