Stablecoin activity continues to gain traction in 2024 as demand for decentralized finance (DeFi) applications increases.
The monthly stablecoin trading volume on Ethereum alone is likely to hit the $1 trillion mark for the first time this April. As of April 25, trading volume is at over $989 billion, which is already a record five days prior to the end of the month, according to data from The Block.
Ethereum-based stablecoins account for 55% of the total stablecoin market, with Tron and other chains winning significant market share.
The total supply of Ethereum stablecoins has recovered to the highest level since March 2023 at $92 billion. It hit a record $125.6 billion at the beginning of March 2022.
Total stablecoin supply is now at the highest since June 2022 at over $165 billion. The stablecoin market hit a record valuation of over $183 billion in May 2022.
Tether’s USDT continues to dominate the sector with its record market cap of $115 billion, accounting for 70% of the total market cap.
Today, almost 58 billion USDT resides on Tron and over 52 billion on Ethereum, both at a record high.
The second-largest stablecoin by market cap, Circle’s USDC, has a supply of over $34 billion, with $26 billion residing on Ethereum. While Tron has never played a major role in Circle’s ecosystem, it halted USDC support for Tron in February.
Ethena’s USDe Drives Algorithmic Stablecoin Activity
Algorithmic stablecoins on Ethereum are also experiencing a revival, with the total supply surging to almost $10 billion, which is the highest since October 2022. Interestingly, DAI’s market cap has been hovering near $5 billion over the last 12 months, while the aggregate value of the rest of algorithmic stablecoins has doubled during the same period. The main driver was Ethena’s USDe, which quickly rose to $2.4 billion.
The crypto community is concerned that a recent bipartisan bill introduced last week by US Senators Cynthia Lummis and Kirsten Gillibrand would ban algorithmic stablecoins.
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