Data has indicated how the stablecoin market cap has been on an upward curve and clocked eleven months of consecutive growth, a record that has taken it to its highest level.
An aggregator in the crypto space has published data that puts the stablecoin market cap at $168 billion. This level has been the highest point for the stablecoin market cap; in other words, it is a new all-time high. The market cap has hit this point after consecutive months of growth, which could also be an indication of stablecoin adoption. Moreover, it has breached its earlier all-time high of 2022.
This data mainly includes those under the ambit of reserve assets stablecoin. It means that real assets like gold back the underlying value of these stablecoins. It does not include algorithmic stablecoins.
Earlier in 2022, the market cap had touched $167 billion. But the months after that saw a crypto market crash. Along with the decline, the stablecoin market also lost value. Since then, it had traded at lower levels until 2023, when it again started picking up. With this landmark moment, analysts and experts across social media were jubilant. Along with the usual trends, USDT figured at the top of the list with a market cap of over $90 billion.
At the same time these improving signs in stablecoin adoption, positive news has also emerged from crypto ETFs. In Hong Kong, the spot crypto ETFs currently have over $250 million in assets under management. All these factors could weigh on the new investors entering the crypto market through these innovative products.
Stablecoins have also been on the radar of global regulators. For instance, a new stablecoin framework is on the horizon in Abu Dhabi. On the other hand, private firms have been bullish on the potential of stablecoins in industries like financial services.
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