Stablecoins Continue to Grow, Hitting a Record Market Capitalization of $243.8 Billion

Stablecoins, like Tether USD Coin, continued their strong growth this week, with their market capitalization hitting a record of $243.8 billion.

Stablecoins, such as Tether USD Coin, saw continued strength this week, with their market capitalization hitting a record of $243.8 billion.

These coins have added over $38 billion in assets since they started the year with $240 billion. Tether (USDT) saw its market cap surge to more than $151 billion, giving it a dominance of 62%.

It is followed by USD Coin (USDC), which has $60.4 billion in assets, and Ethena USDe (USDe) with almost $5 billion. Recently launched USD1, by President Donald Trump’s World Liberty Financial, has seen over $2.1 billion flowing into the coin. Most of these funds are likely linked to MGX’s $2 billion investment in Binance, the biggest crypto exchange.

Other notable stablecoins include Ripple USD (RLUSD) and PayPal’s PYUSD, which have accumulated assets of $900 million and $313 million, respectively.

Data compiled by Visa shows that more people are engaging with stablecoins for their daily transactions. More than 192.2 million unique sending addresses have transacted in the last 12 months, while 242.7 million have received stablecoins. The total active unique addresses reached 250 million.

This pushed the total transaction count to 5.8 billion and the transaction volume to $33.6 trillion.

Stablecoins are becoming increasingly popular due to their lower costs compared to traditional methods. For instance, sending $1,000 to a user through PayPal incurs a 2.99% fee plus a variable fee.

A stablecoin transaction attracts a significantly smaller fee than that. Additionally, these transactions are completed faster than traditional methods like wire transfer.

Citi believes that stablecoins will continue to gain market share in the coming years.

In a recent report, the company estimated that stablecoins will be valued at over $1.6 trillion by 2030, while Standard Chartered estimates they will hit $2 trillion by 2028.