Revival in The Stablecoin Market: $5.48 Billion Surge within Three Weeks
In an astonishing turn of events, the market capitalization of prevalent stablecoins has recently seen a significant boost. Total market value that was lingering around $123.66 billion has made its way up to $129.14 billion currently. This tremendous expansion, equivalent to almost $6 billion, has its roots following the downfall of the stablecoin sector that lost many billions in the past year. Stablecoins like BUSD, USDP, and USDC have witnessed substantial redemptions over the last year.
The fresh data revolve around a robust expansion of the stablecoin market that manifested a growth of $5.48 billion within the duration of only 22 days – from November 2 to November 24, 2023. As compared to the global total trading volume of $88.65 billion, the stablecoins took over a substantial part with a trading volume of $50.74 billion over the last 24 hours.
Metrics analysis establishes that stablecoin swaps make up 57.23% of the overall trading volume globally. Tether (USDT), with a market capital of $88.59 billion, remains the biggest player. It represents 68.59% of the total $129.14 billion market capital while constituting 5.93% of the entire $1.4 trillion crypto economy.
In this recent stablecoins surge, USDT’s market cap has seen a 4.24% boost. USDC also stayed on the positive side by experiencing a modest 0.81% growth from its former $24.5 billion to the current $24.7 billion since November 2.
DAI’s market value has ascended by an impressive 43.2%, whereas Trueusd’s (TUSD) supply has witnessed a slight dip by 5.38% since November 2. BUSD experienced a declining trend through the year because Paxos decided to halt its minting. From its past value of $1.95 billion, BUSD’s market cap has decreased 10.76%, leaving it at $1.74 billion now. The new entrant, First Digital USD (FDUSD), has seen its market cap rise 24.23%, going from $590 million to $733 million.
Tron’s USDD and Frax Dollar (FRAX) have seen a minor shrink by 0.82% and 0.44%, with their market caps changing from $725 million to $719 million, and from $671 million to $668 million respectively. Paxos — responsible for the issuance of PYUSD, saw a 1.10% dip in the Pax Dollar (USDP) supply — down from $453 million to $448 million. Similar to this, Liquity USD (LUSD), the tenth most significant stablecoin by market capitalization, saw a reduction in its supply from $220 million to $205 million. However, the market caps of Alchemix USD (ALUSD) and Paypal USD (PYUSD) showed no significant changes.
How The Bitcode Method App Fits into Stablecoin Market Dynamics
The swings in the stablecoin market can appear unnerving. And this is where Bitcode Method app comes in handy. This revolutionary tool assists users to navigate through the tumultuous cryptocurrency markets effortlessly. The Bitcode Method app provides compiled data and trends, allowing users to make well-informed decisions around buying, holding, or selling different stablecoins.
Throughout these shifts in the stablecoin market, The Bitcode Method has surfaced as a reliable partner. With its easy-to-understand interface and real-time data, users can get accurate insights about the market performance of a variety of stablecoins. This can significantly improve their decision-making process and might eventually lead to profitable returns on investments.
Frequently asked Questions
1. What is a stablecoin?
A stablecoin is a type of cryptocurrency that is designed to minimize price volatility, often by pegging its value to a specific asset or a basket of assets. This stability makes it an attractive option for users looking for a more reliable and less volatile digital currency.
2. How does a stablecoin maintain its stability?
Stablecoins maintain their stability through various mechanisms. Some stablecoins are backed by fiat currencies, such as the US dollar, held in reserve. Others use algorithms or smart contracts to automatically adjust the supply of the stablecoin to stabilize its price. Additionally, some stablecoins are collateralized with other cryptocurrencies or assets.
3. What has caused the recent surge in the stablecoin market?
The recent surge in the stablecoin market can be attributed to several factors. Firstly, the increased interest in the cryptocurrency market as a whole has led to more demand for stablecoins as a safer and less volatile alternative. Additionally, stablecoins have gained popularity in decentralized finance (DeFi) applications, where they are used as a form of collateral or for providing liquidity.
4. What are the advantages of using stablecoins?
There are several advantages to using stablecoins. Firstly, their stability can help users mitigate the risks associated with price volatility in traditional cryptocurrencies. Stablecoins can also facilitate faster and cheaper transactions compared to traditional banking systems. Furthermore, stablecoins offer a way to store and transfer value digitally, providing access to financial services for individuals in regions with limited banking infrastructure.
5. Are stablecoins regulated like traditional fiat currencies?
Regulations surrounding stablecoins vary across jurisdictions. While some stablecoins may operate within existing regulatory frameworks, others may fall into grey areas. Regulators are increasingly paying attention to stablecoins due to concerns around transparency, money laundering, and potential risks to financial stability. As the stablecoin market continues to grow, it is likely that regulatory frameworks will evolve to address these concerns.
6. Can stablecoins be used for investment purposes?
While stablecoins are primarily designed to provide stability and facilitate transactions, they can also be used for investment purposes. Some stablecoins offer interest-bearing accounts or yield farming opportunities, allowing users to earn passive income on their holdings. However, it is important for investors to carefully evaluate the risks and terms associated with such investments.
7. What does the future hold for the stablecoin market?
The future of the stablecoin market looks promising. As digital currencies become more mainstream, stablecoins are expected to play a crucial role in bridging the gap between traditional finance and blockchain-based systems. With ongoing developments in technology and increasing regulatory clarity, the stablecoin market is likely to continue its growth trajectory, attracting more users and investment in the coming years.