Stablecoin Market Cap Hits All-Time High of $190 Billion

This milestone also marks the 14th consecutive month of growth, reflecting the sustained demand for stablecoins as an integral part of the digital financial ecosystem.

The stablecoin market has just recorded a new historical milestone, when its official market cap hit $190 billion, surpassing the previous peak of $188 billion in April 2022, right before the collapse of Terra-Luna.

Stablecoins have become the preferred choice as investors pour capital into cryptocurrencies, hoping that the US government will be more friendly to the industry after Donald Trump's victory. Pegged to a stable asset, mainly the USD, stablecoins provide important liquidity for cryptocurrency transactions and are likened to "dry powder" on exchanges.

This year has also seen an explosion of unique tokenized products. For example, Ethena's USDe grew 42% in November, reaching a record capitalization of $3.8 billion. USDe generates profits for investors by holding BTC and ETH spot, while shorting futures contracts to take advantage of funding rates. Currently, Ethena offers an attractive yield of 25% APY thanks to high funding rates from the vibrant crypto market.

In addition, products such as BlackRock's BUIDL tokenized currency fund or Ethena's USDe investment strategy have also been included in the total stablecoin market capitalization by CCData.

In the stablecoin segment, Tether (USDT) still holds the dominant position with a capitalization increase of 10% in the past month, reaching a record of $132 billion, accounting for nearly 70% of the market share. Meanwhile, Circle (USDC) increased by 12% to nearly $39 billion, the highest since the banking crisis in March 2023, accounting for 20.5% of the market share.

Not only did major stablecoins grow, but out of nearly 200 tokens tracked by CCData, about 38 tokens reached all-time high supply peaks in the past month.

The strong price increase of the crypto market also boosted the trading volume of stablecoin pairs on centralized exchanges, increasing by 77% compared to the previous month, reaching $1.8 trillion. Of which, USDT led with 83% of the trading volume, First Digital's FDUSD accounted for 9%, and USDC accounted for 8%.

The recovery and boom of the crypto market not only helped stablecoins achieve record capitalization but also expanded the presence of new tokenized products such as USDe and BUIDL. Along with the dominance of Tether and Circle, stablecoins continue to play a vital role in providing liquidity and driving growth across the entire crypto market.