The stablecoin market has achieved a remarkable milestone, reaching a new market capitalization of $310.117 billion on Saturday, December 13. As of the latest data, the market cap sits at approximately $309.911 billion, according to information from DeFiLlama.
Leading the pack is Tether”s USDT, which commands a market cap of $186.242 billion and holds a significant market dominance of 60.10%. Following closely is Circle”s USDC, with a market cap of $78.315 billion and around 25% dominance.
The growth of the stablecoin sector has been substantial, witnessing an impressive 52.1% increase over the past year, climbing from $203.728 billion to the current figure. Notably, during the October market downturn, stablecoins maintained their upward trajectory. Although the market cap dipped to $302.837 billion in November 2024, it quickly rebounded to establish this new record.
In the past week alone, Tether”s USDT saw a rise of 0.32%, adding $593.34 million to its circulation across various networks, including Tron, Solana, Arbitrum, Aptos, and Polygon. Circle”s USDC also reported a growth of 0.71%, with an additional $555.56 million worth of coins integrated into Ethereum, Solana, Hyperliquid, Base, and BSC. Other stablecoins, such as Sky”s USDS, PayPal”s PYUSD, and World Liberty Financial”s USD1, minted new coins during the same period.
Beyond the top ten stablecoins, Tron”s USDD surged by 23.46%, while crvUSD saw a notable increase of 28.92%. Overall, the stablecoin market experienced a 0.57% gain, resulting in a total addition of $1.79 billion. However, not all stablecoins fared well; BlackRock”s BUIDL encountered a decline of 13.24%, now standing at a market cap of $1.321 billion.
The trend for yield-bearing stablecoins remains unfavorable. Ethena”s USDe experienced a drop of 2.98% this week, while USDtb faced a more severe decline of 18.99%. Currently, USDe holds a market cap of $6.525 billion, and USDtb is at approximately $850.8 million. The decline in yield-bearing stablecoins has been attributed to their decreased attractiveness to investors, a trend that intensified following the October crypto crash, particularly after USDe lost its peg to the U.S. dollar.
Data from StableWatch indicates that the market cap for yield-bearing stablecoins has dwindled by 1.9% in the last 30 days, with redemptions outpacing new coin minting. Over the previous week, alUSD plummeted by 80.5%, smsUSD fell by 68.1%, and sBOLD decreased by 13.6%. The yield-bearing stablecoin sector currently comprises around $19.86 billion across 64 coins, with the majority of stablecoin market expansion driven by payment-focused, non-yield-bearing stablecoins.
In a recent development, PayPal has started allowing content creators on YouTube to receive their payouts in PayPal USD (PYUSD). May Zabaneh, PayPal”s head of crypto, confirmed this initiative, stating it is currently available only to U.S.-based creators. This move reflects PayPal”s commitment to enhancing the adoption of PYUSD, which has increased by 13.33% in the past 30 days, bringing its market cap to $3.863 billion, making it the sixth largest payment-focused stablecoin.
As the stablecoin market continues to mature, its trajectory indicates a strong reliance on payment stablecoins, showcasing the evolving landscape of cryptocurrency.
