USDT market cap crosses $120 billion as stablecoins continue their uptrend
- Stablecoin market cap rose 0.05% in October to $173 billion, marking the 13th consecutive month of increase since September 2023.
- Tether became the first stablecoin to surpass a $120 billion market cap, holding 69.9% of the stablecoin market share.
- Sky's USDS also became the second-fastest stablecoin to reach a $1 billion market cap in just 13 days.
The stablecoin market capitalization continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Stablecoin market sees increased trading activity as uptrend continues
In its latest report, CCData indicated some of the major trends in the stablecoin market in October, with the sector seeing an increase in market cap, rising 0.05% to $173 billion.
This marked the 13th month of a steady increase in the stablecoin market since September 2023. The data also shows that this has been the slowest month in the 13 months since the last market cap decline.
The increase points to growing demand and confidence in stablecoins, particularly in older projects like Tether's USDT.
Stablecoin trading volumes across centralized exchanges declined by 1.49%, reaching $899 billion as of October 27.
Despite this dip, the upward trend in trading volumes has reached figures last seen before Terra's UST collapse. This could imply that participants are increasingly leveraging stablecoins for trading and investment in the crypto market.
Meanwhile, USDT stablecoin crossed $120 billion in its market cap, becoming the first stablecoin to achieve this milestone.
Moreover, USDT's market share among centralized exchanges rose to 79.1%, reflecting its dominance in the stablecoin market. This includes 65% of all spot trading activity and 80% share among derivatives.
Additionally, Sky's USDS became the second fastest stablecoin to hit a $1 billion market cap. It achieved this record in 13 days, beaten only by FEI, which realized a $2.15 billion market cap at launch.
The general increase in the stablecoin market cap suggests that liquidity is rising to fuel more demand, which may lead to higher crypto prices.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
