Eight months of growth have resulted in the stablecoin market capitalization reaching its greatest level since April 2022, according to a new analysis by CCData.
As of May 29, the stablecoin market capitalization has grown by 0.63% to $161 billion, according to the cryptocurrency analytics portal. Stablecoin market dominance did, however, somewhat decline to 6.07% from 7% in March.
“This decline underscores a recovery in the prices of major crypto assets, reflecting improved market sentiment following the unexpected approval of a spot Ethereum ETF in the U.S.,” the report stated.
For the sixth consecutive month, Athena USDe’s market capitalization increased among the top 10 stablecoins, rising by 11.6% to $2.61 billion. This increase, according to CCData, is a result of its increased use as collateral for Bybit’s perpetual trading.
At an all-time high of $111 billion as of May 29, Tether—the largest stablecoin by market capitalization—rose to 69.3% of the market.
BlackRock’s tokenized fund, BUIDL, surpassed Franklin Templeton’s BENJI to become the largest tokenized treasury fund, with a 19.6% increase to $448 million. A 1:1 swap of BUIDL for USDC is possible. BUIDL is a stake in BlackRock’s USD Institutional Digital Liquidity Fund.
The data also shows that Circle’s market capitalization in USDC increased for the sixth straight month in May, coming to $32.6 billion. Given that the monthly trading volume for USDC pairs reached a record high in March, this development is consistent with growing demand. For the second month in a row, USDC’s market share by trading volume rose to 8.27%.
Increased on-chain trading activity on networks such as Base and Solana has helped USDC, as evidenced by the rise in the percentage of USDC supply on these chains to 9.29% and 7.78%, respectively.
Stablecoin trade volumes on centralized exchanges dropped to a monthly low of $829 billion on May 23 despite the increase in market capitalization. Trading activity on controlled exchanges has traditionally decreased in the two months following the Bitcoin halving event, according to the analysis.
The CCData report comes to the overall conclusion that stablecoins’ total market capitalization has now recovered from the losses sustained since the Terra Luna ecosystem collapsed and the algorithmic stablecoin TerraClassicUSD (USTC) nearly completely depegged, which set off a seventeen-month downward trend.
