The global stablecoin market cap has reached a new all time high of $190 billion in the month of November, 2024. It has surpassed the previous peak of $188 billion from April 2022.
This is a 9.94% increase since October and the 14th consecutive month of growth, primarily driven by USDT and other major stablecoins.
The launch of Bitcoin and Ethereum ETFs has attracted institutional investors, driving demand for stablecoins as a means of managing liquidity.
Stablecoin transactions are becoming secure thanks to improved regulatory frameworks in the US and Europe, which is also promoting wider adoption across a range of financial applications.
Tether alone commands approximately 75% of the stablecoin market limiting the growth potential for competitors like USDC and others. During times of market turmoil, competitors may flee their capital due to the trust and familiarity with USDT.
For example, USDC faced a decrease in market cap after regulatory challenges, prompting users to move towards USDT for perceived stability.
Investing in crypto is risky, therefore it's important to proceed with caution.
Not financial advice.
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