Over the past five days, the stablecoin market has continued its upward trend, increasing by $1.3 billion in value. The largest stablecoin network by market capitalization, tether (USDT), experienced an expansion of 820 million in supply during this period.
Tether’s Supply Swells by 820M Amid $1.3B Stablecoin Market Boost
The stablecoin economy is gaining momentum again, nearing the all-time highs it saw before the collapse of Terra’s UST. At that time, the stablecoin market was around $188 billion. Today, the fiat-pegged market stands at $169.72 billion. Tether continues to grow significantly; in the last five days alone, USDT’s supply surged by 820 million, with its market cap climbing from $116.88 billion to the current $117.70 billion.
Since Jan. 1, 2024, USDT’s market cap has grown by $25.96 billion, rising from $91.74 billion to its current level. Another stablecoin on the rise is First Digital’s FDUSD, which added 280 million to its supply in just one day. Over the past week, 710 million FDUSD was added to the market. Meanwhile, Paypal’s PYUSD, the sixth-largest stablecoin by market cap, is also experiencing growth.
PYUSD is approaching the $1 billion mark for the first time, with its market cap at $981.69 million on Friday, Aug. 23. In the past 24 hours, more than 15 million PYUSD tokens were issued, and in the last week, its supply grew by 190 million more tokens. Aave’s GHO also saw modest growth, with a $4 million increase over the past week.
While some stablecoins saw their supplies grow, others experienced reductions, resulting in a net increase of $1.3 billion over the past 120 hours. As the market inches closer to its previous peaks, stablecoins continue to play a crucial role in the broader cryptocurrency ecosystem, reflecting ongoing demand for digital financial stability.
