Stablecoin Market Swells With Growth in March, Led by Ethena's USDE

Introduction:
This month we have witnessed a continuous expansion in the stablecoin domain, eclipsing the $150 billion mark on March 20, 2024, with an infusion of an additional $1.4 billion into the arena since then. Leading the pack in supply growth for March was Ethena’s USDE, soaring by 194.9% over the last 30 days.

As the cryptocurrency market rides a bullish wave, the stablecoin sector has experienced consistent monthly growth throughout the year. The tally for March reflects this trend, with the market for U.S. dollar-pegged digital currencies increasing from $143.3 billion to $151.4 billion. Although certain stablecoins witnessed a dip in their supplies, the total market capitalization of the stablecoin ecosystem advanced by more than $8 billion. Tether (USDT), the heavyweight in the stablecoin category, experienced a 6.3% growth in supply this month.

Tether’s market valuation now stands at approximately $104.5 billion. Circle’s USDC experienced a notable expansion in its supply this month, climbing by 13.1% to reach a current market capitalization of $32.46 billion. Essentially, USDC has returned to its position from a year ago, after its supply dipped below 24 billion in mid-November 2023. Just a month prior, USDC boasted a market cap of $28.7 billion. Makerdao’s DAI witnessed a slight decrease in supply by 1.7%, now valued at approximately $4.9 billion.

Ethena USDE’s market valuation growth over the last 90 days.
First Digital’s FDUSD encountered the steepest decline among the top five, shedding 22.1% of its supply over the past month. Following this decline, FDUSD’s market valuation now hovers at $2.56 billion. In contrast, Ethena’s USDE experienced a substantial expansion, with its supply ballooning by 194.9% in March, elevating its market valuation to $1.53 billion. Tron’s USDD saw a slight decrease of 0.8% this month, with the coin’s current market cap at about $732.4 million. Frax’s FRAX saw a marginal increase in supply by 0.1%. Trueusd faced a significant contraction in March, with the TUSD supply plummeting by 60.1% to $494 million.


According to historical data, TUSD’s supply has not been as low since April 2021. Paypal’s PYUSD experienced a rough March, declining by 38.2% over the month, bringing its market valuation to approximately $188.4 million. Just below PYUSD, Alchemix’s ALUSD saw a modest supply increase of 1.2% this past month. As the tenth largest stablecoin by market cap, ALUSD now stands at a $166.6 million valuation. Other USD-backed stablecoins such as CRVUSD, USDP, and GUSD also faced declines, dropping around 4.2%, 28.9%, and 9.8% respectively.

Conclusion:
The stablecoin market's growth in March, particularly led by Ethena's USDE, showcases the continued adoption and confidence in digital currencies pegged to fiat. While some stablecoins saw declines, the overall increase in market capitalization reflects ongoing interest and investment in this sector amid the broader bullish sentiment in the cryptocurrency market.

What do you think about the stablecoin economy’s growth over the past month? Share your thoughts and opinions about this subject in the comments section below.

https://news.bitcoin.com/stablecoin-market-swells-with-growth-in-march-led-by-ethenas-usde/