Arcane Research and CryptoRank, the crypto research outlets, have confirmed that the stablecoin supply has hit the milestone amount of $180 billion.
It has been reported that the growth in stablecoins continues to outpace the rest of the market, up 6% in the past 30 days. In times of market volatility, stablecoins can offer price stability, backed by specific assets or algorithms. Over the month of February, three stablecoins entered the top 10 coins by market capitalization as Binance USD (BUSD) briefly entered.
However, Arcane Research stated that the three largest stablecoins, Tether (USDT), USD Coin (USDC), and BUSD now account for a total of “9% of the total crypto market cap.” Plus, while volatility reigns proud, the stablecoin supply has grown by $9.5 billion over the past 30 days. Arcane Research stated that while the largest stablecoin, at 44% market share, USDT has stagnated over the course of last year, and USDC is notching it up a gear with “20% growth in 2022.”
Arcane Research further stated:
“If USDC and USDT continue growing at similar rates as so far in 2022, USDC will become the largest stablecoin by market cap at the end of June.”
The report said that there was more good news for Tether, the largest stablecoin by market capitalization this morning. An industry bugbear, Tether FUD was a destructive narrative for the crypto industry in 2021, but the USDT trajectory now seems to be on the up.
Likewise, in its latest reserves attestation, the company had reduced its exposure to commercial paper by 21%. The report stated that Tether’s “consolidated assets exceed its consolidated liabilities.” While most cryptocurrency advocates may wonder what the importance of stablecoins is, their use cases are growing particularly in the developing world.
Thus, with the total supply of stablecoins hitting new all-time highs (ATH), traders hope that $39,600 does not pose heavy resistance.
Source: Cointelegraph