A recent report by CCData has revealed that the market capitalization of stablecoins has reached its highest level since April 2022, marking eight consecutive months of growth. According to the cryptocurrency analytics platform, the stablecoin market cap increased by 0.63% during the month of May, reaching a total of $161 billion. However, the market dominance of stablecoins slightly decreased from 7% in March to 6.07%.
Among the top ten stablecoins, Athena USDe experienced a significant increase in market cap for the fifth consecutive month, rising by 11.6% to $2.61 billion. CCData attributes this growth to the expanded use of Athena USDe as collateral for perpetual trading on Bybit.
Tether (USDT), the largest stablecoin by market cap, achieved an all-time high market cap of $111 billion as of May 29, increasing its dominance in the stablecoin market to 69.3%.
Meanwhile, BlackRock’s tokenized fund token BUIDL saw a surge of 19.6% to $448 million, making it the largest tokenized treasury fund, surpassing Franklin Templeton’s BENJI. BUIDL represents a share in BlackRock’s USD Institutional Digital Liquidity Fund and can be exchanged for USDC on a 1:1 basis.
The report also highlighted the continuous increase in Circle’s USDC market capitalization, reaching $32.6 billion in May for the sixth consecutive month.
This rise in USDC’s market capitalization corresponds with a surge in demand, with USDC pairs recording an all-time high monthly trading volume in March. USDC’s market share by trading volume has also increased for the second month, reaching 8.27%.
According to the report, USDC has benefited from the growing on-chain trading activity on networks like Base and Solana, with the percentage of USDC supply on these chains rising to 9.29% and 7.78% respectively.
Despite the growth in market cap, stablecoin trading volumes on centralized exchanges hit a monthly low of $829 billion on May 23. The report suggests that this decline in trading activity on centralized exchanges is a trend observed in the two months following the Bitcoin halving event.
In conclusion, the CCData report indicates that the total market capitalization of stablecoins has now recovered from the losses incurred since the collapse of the Terra Luna ecosystem and the significant depeg of the algorithmic stablecoin TerraClassicUSD (USTC), which initiated a seventeen-month downtrend.
It is important to note that this article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research and analysis before making any investment or trading decisions.