Riding on the waves of Bitcoin (BTC) and Solana (SOL) reaching new all-time highs, stablecoins' overall market cap is recording massive growth—the fastest pace since 2021. According to data from DefiLlama, the total market cap of stablecoins is steadily cruising towards $200 Billion. 

What makes this news more spectacular is that it signals a major comeback by stablecoins following the TerraUSD disaster in May 2022. The Do Kwon saga formed a $19 billion crater in the stablecoin market that took over two years to fill. 

According to several crypto market experts, stablecoins recent growth is fueled by several factors including Tether’s growth, fintech giants venturing into crypto, and the post-election crypto market rally. 

As popular crypto analyst Nic Carter noted in his post on X, “Going on record. As of 10/27/23, I believe that the supply of stables has bottomed and will be up only from here."

He also added that, “Reason being: crypto markets recovering, increased uptake of stables via fintechs/neobanks, new interest-bearing stables passing along t-bill rates, and emergence of crypto-backed interest-bearing stables”

Recently, Tether’s token circulation peaked at nearly $133 billion which accounts for about 70% of the overall stablecoins market. 

This surge is due to the company's recent efforts to expand the token adoption by venturing into new industries like commodities. And their efforts are yielding massive results as CoinTelegraph reported earlier this month how Tether facilitated a $45M oil deal in the Middle East.

Another major contributing to stablecoins rise is the rising trend of fintech delving into crypto. There was the recent acquisition of a stablecoin startup Bridge by Strip Inc. for $1.1billion. Also, PayPal Holding Inc. also announced the launch of its stablecoin, PYUSD to facilitate trades on the platform.

As popular crypto expert Miles Deutcher observed in an X post, “So far, stablecoins have found the strongest product market fit of any crypto innovation. Crazy that they're doing 2x the transaction volume of Paypal + Visa combined.”

Finally, Donald Trump's victory with his pro-stablecoin stance during his campaign is also responsible for stablecoins gaining ground. The stablecoin market is capitalizing on the skeptic sentiment surrounding a potential future of a less regulated crypto environment. 

According to a post by a user on X with the alias Pledditor, “The WorldLibertyFi team says Donald Trump's vision of crypto is not bitcoin, it's stablecoins.” "Nobody is going to walk into a store and figure out okay, my groceries are $230 American dollars, how many Satoshis is that? It just doesn't make sense!” he added.  

At the moment, Tether’s USDT remains the forerunner in the stablecoin sector with a $133.972 billion market cap which represents a 11.24% increase in the last 30 days. Circle’s USDC has also recorded significant growth according to data from DefiLlama. USDC’s market cap has gone up by 4.78% from last month—overall market cap now stands at $36.147 billion.

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