Global stablecoin market reaches record highs
23.11.2024
The global supply of stablecoins has reached new record levels, with USDT and USDC maintaining their dominance.
According to data, the market capitalization of stablecoins increased by 46% in 2024, hitting a record $191.6 billion. Over the past 12 months, this market has shown consistent growth, surpassing a 50% increase since the beginning of the year.
Tether, the largest stablecoin issuer, has expanded the circulation of its USDT token to $133 billion, accounting for 69% of the global market. Meanwhile, USDC ended 2023 with a capitalization of $24 billion but grew to $39.5 billion in 2024, capturing a 21% market share.
Market recovery
The 2022 crisis caused by the collapse of TerraUSD wiped $19 billion from the stablecoin market. However, two and a half years later, the sector has fully recovered, reaching nearly $170 billion in August 2024.
The recovery was driven by the bullish stance of the cryptocurrency market following Donald Trump's election as U.S. President. This event triggered a new surge in digital assets, with Bitcoin surpassing $99,000. According to Coingecko, the total cryptocurrency market capitalization grew by $0.88 trillion after this political milestone.
New prospects in global trade
Stablecoins are becoming increasingly crucial for cross-border transactions. Tether has led this trend, completing the first stablecoin-based transaction in oil trading in the Middle East. In October, the company financed a physical deal between a publicly listed oil company and a major commodities dealer.
In the United Kingdom, policymakers also recognize the potential of stablecoins. The Economic Secretary announced plans to develop a regulatory framework for cryptocurrency by 2025.
These developments have sparked optimism among investors who anticipate changes in the regulatory landscape. The previous UK government had already integrated cryptocurrencies into payment legislation, and the new Labour government plans to continue this trajectory by expanding the regulation of stablecoins.
Return to blogAccording to data, the market capitalization of stablecoins increased by 46% in 2024, hitting a record $191.6 billion. Over the past 12 months, this market has shown consistent growth, surpassing a 50% increase since the beginning of the year.
Tether, the largest stablecoin issuer, has expanded the circulation of its USDT token to $133 billion, accounting for 69% of the global market. Meanwhile, USDC ended 2023 with a capitalization of $24 billion but grew to $39.5 billion in 2024, capturing a 21% market share.
Market recovery
The 2022 crisis caused by the collapse of TerraUSD wiped $19 billion from the stablecoin market. However, two and a half years later, the sector has fully recovered, reaching nearly $170 billion in August 2024.
The recovery was driven by the bullish stance of the cryptocurrency market following Donald Trump's election as U.S. President. This event triggered a new surge in digital assets, with Bitcoin surpassing $99,000. According to Coingecko, the total cryptocurrency market capitalization grew by $0.88 trillion after this political milestone.
New prospects in global trade
Stablecoins are becoming increasingly crucial for cross-border transactions. Tether has led this trend, completing the first stablecoin-based transaction in oil trading in the Middle East. In October, the company financed a physical deal between a publicly listed oil company and a major commodities dealer.
In the United Kingdom, policymakers also recognize the potential of stablecoins. The Economic Secretary announced plans to develop a regulatory framework for cryptocurrency by 2025.
These developments have sparked optimism among investors who anticipate changes in the regulatory landscape. The previous UK government had already integrated cryptocurrencies into payment legislation, and the new Labour government plans to continue this trajectory by expanding the regulation of stablecoins.