Stablecoin market sees $2.21 billion growth driven by Tether and PYUSD
The stablecoin market has experienced significant growth, expanding by $2.21 billion between August 9 and August 18, 2024.
This surge builds on the $1.53 billion increase observed from August 6 to August 9.
Tether (CRYPTO:USDT) played a central role in this expansion, contributing 57.01% of the total growth.
During this period, Tether’s supply increased by 1.26 billion USDT, bringing its market cap to $116.88 billion, which now represents 69.40% of the $168.42 billion stablecoin market.
In the past 30 days, USDT's supply grew by 2.9%, while other stablecoins like USD Coin (CRYPTO:USDC) saw a 3.3% increase.
However, not all stablecoins shared in this growth.
MakerDAO’s DAI (CRYPTO:DAI) and Ethena’s USDE (CRYPTO:USDE) faced declines of 1% and 9.2%, respectively, with USDE struggling to maintain a $3 billion market cap.
On the other hand, First Digital’s FDUSD (CRYPTO:FDUSD) experienced a significant 17.2% rise in supply during the same period.
One of the notable developments in the stablecoin market was PayPal’s PYUSD (CRYPTO:PYUSD), which overtook Tron’s USDD (CRYPTO:USDD) to become the sixth-largest dollar-pegged stablecoin.
PYUSD’s supply grew by $140.9 million in just ten days, mostly minted on the Solana blockchain.
By August 18, PYUSD’s market cap reached $828.86 million, marking a 41.5% increase since July 19.
In contrast, Tron’s USDD saw only a modest 0.7% growth, while Frax Dollar (CRYPTO:FRAX) and True USD (CRYPTO:TUSD) remained relatively stagnant.
Other stablecoins had mixed performances, with Alchemix USD (CRYPTO:ALUSD) seeing a 1.1% rise and Aave’s GHO climbing by 19% since July 19.
However, Paxos’ Pax Dollar (CRYPTO:USDP) and Gemini Dollar (CRYPTO:GUSD) faced declines of 6.5% and 6.9%, respectively.
The primary drivers of the stablecoin market's recent growth have been the increases in the supplies of USDT and PYUSD, with other stablecoins showing varied results.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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