The stablecoin market has achieved a new milestone, with its total market capitalization hitting an all-time high of $168 billion following nearly a year of continuous growth, according to data from DeFiLlama.
This new peak surpasses the previous record of $167 billion set in March 2022, which was followed by a significant decline to $135 billion by the end of that year.
Crypto analyst Patrick Scott, also known as “Dynamo DeFi,” highlighted this milestone in an August 26 post on X (formerly Twitter), noting that the increase in market cap could be indicative of fresh capital entering the cryptocurrency space. “And just like that, we’re at a new all-time high. The total stablecoin market cap, excluding algorithmic stables, is now at its highest point ever, surpassing its previous high from early 2022,” Scott commented.
While Scott did not specifically identify the factors driving this growth, he pointed out that “Retail has been in some form for at least eight months” when responding to a query about whether institutional investment was behind the rise.
Leading the stablecoin market is Tether (USDT), which started the year with a market cap of $91.69 billion. Throughout 2024, Tether has seen consistent monthly increases, surpassing $117 billion in market capitalization for the first time in August.
Similarly, Circle’s USD Coin (USDC) has experienced growth this year, reaching a market cap of over $34 billion—its highest level for 2024. However, this figure remains significantly below its all-time high of $55.8 billion, recorded in June 2022.
Despite the growth in market capitalization, stablecoin trading volumes have seen a decline. A report from CCData indicates that stablecoin trading volumes dropped by 8.35% to $795 billion in July, due in part to reduced activity on centralized exchanges. The report also notes that concerns surrounding the Markets in Crypto-Assets Regulation (MiCA) and its potential impact on USDT in Europe may have contributed to the decline in trading activity.
This downward trend in trading volumes has continued into August, with current market volumes hovering just above $46 billion, according to CoinMarketCap.
This version maintains the key information while offering a clear and concise presentation of the recent developments in the stablecoin market.
