The entire stablecoin market, excluding algorithmic stablecoins, broke a record after 2.5 years. Fixed coins reached a total market capitalisation of $168 billion. The last record was in March 2022 with $167 billion. At that time, corresponding to the start of the Russian-Ukrainian war, the Terra LUNA crisis also occurred and Bitcoin dropped to $17,000. The balances in the stable coin market, which depend on $1, were disrupted for many coins.

According to DeFiLlama data, the market managed to break its record with 0.8% growth over the weekend. The fixed coin market, which decreased to $120 billion in October 2023, was on the rise as of 2024.

“The increase in the stablecoin market cap could reflect growing confidence”

BTCMarkets analyst Rachael Lucas, who made evaluations to The Block, stated that the corporate world’s confidence in cryptocurrencies may be behind this increase:

“Traditionally, demand for stability in uncertain market conditions has driven investors towards stablecoins as a safe haven.” she said and added. “Alternatively, the increase in the stablecoin market cap could reflect growing confidence in the crypto market, especially from institutional investors.”

Big rise in USDT

USDT, the largest stablecoin, has maintained this position by far, while increasing its market capitalisation by 28% this year, from $91 billion to $118 billion. USDT also currently holds 70% of the total stablecoin market.

The second-ranked USDC increased its total market capitalisation from $23.8 billion to $34 billion in 2024.