The stablecoin market has seen significant growth recently, expanding by $2.21 billion in around a week between August 9 and August 18. Tether, the cryptocurrency stable coin, was at the core of this increase, contributing 1.26 billion USDT to its supply, which now represents 69.4 per cent of the $168.42 billion stablecoin market. This marks a splendid 2.9 per cent growth for Tether in the last 30 days.
On the other hand, the PayPal-backed PYUSD stablecoin has also witnessed impressive growth. Within just ten days, PYUSD’s supply surged by as much as $140.9 million, turning it into the sixth largest stablecoin, with a market cap reaching $828.86 million as of August 18. This represents an eye-catching 41.5 per cent surge in PYUSD’s supply since mid-July 2024.
Performance of other stablecoins: key observations
In correlation, the performance of other major stablecoins was mixed. USD Coin (USDC) rose 3.3 per cent over the last month. Meanwhile, Makerdao’s DAI saw a slight decrease of 1 per cent, and Ethena’s USDE dropped by around 9.2 per cent, struggling to maintain its $3 billion market cap.
Further, First Digital’s FDUSD experienced a notable 17.2 per cent rise in supply, contrasting with the stagnation seen in other stablecoins like Frax Dollar (FRAX) and True USD (TUSD), among others.
Several other smaller stablecoins also had shown varied results, with Alchemix USD (ALUSD) increasing by 1.1 per cent and Aave’s GHO climbing by 19 per cent since July 19. However, Paxos’ USDP and Gemini Dollar (GUSD) saw declines of 6.5 per cent and 6.9 per cent respectively.
Thus, the recent surge in the stablecoin market is mainly driven by Tether and PYUSD, indicating a growing desire for these coins within the broader crypto economy. As the market develops and evolves, the performance of these stablecoins will continue to shape the digital asset landscape.
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