Stablecoins Surge to $150 Billion in Market Capitalization

On March 21, for the first time in 18 months, the total value of all stablecoins in the cryptocurrency market reached a landmark $150 billion. This notable achievement was highlighted in a report by CoinGecko, which also pointed out that the daily trading volume for this category of digital assets neared an impressive $122 billion.

Leading the charge in this surge is Tether (USDT), which holds a dominant 70% of the market share. Following closely is USD Coin (USDC) with a market capitalization of $31.8 billion, securing for Circle’s stablecoin a significant chunk of over 20% of the market. Ranking third is DAI, with a valuation of $4.7 billion, representing 3% of the market share at the time of reporting.

The cryptocurrency community interprets this significant increase in the market capitalization of stablecoins as a positive indicator for potential market growth. This underscores the pivotal role stablecoins play in meeting market demands, given their substantial market capitalization.

Furthermore, earlier in March, S&P Global Ratings issued its ninth stability rating for an array of stablecoins including USDC, USDT, DAI, FDUSD, FRAX, USDM, GUSD, USDP, and TUSD. In this ranking, USDC, USDP, and GUSD were awarded a “strong” stability rating. Notably, USDM, from Mountain Protocol, received an “adequate” rating. Meanwhile, stablecoins such as USDT, DAI, and FDUSD were categorized as “constrained.” The lowest evaluations and perceived highest risk were assigned to FRAX and TUSD, with none of the assessed assets achieving the highest score in the current ranking.

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