Stablecoin Market Surges $3.26 Billion in Eight Days, Nearing $145 Billion Mark

Key Takeaways

• The stablecoin market rose significantly recently.
• February saw a diverse range of growth across leading stablecoins by market capitalization.
• The past month marked a significant period for Paypal USD (PYUSD) and Pax Dollar (USDP).

Over the past eight days, the stablecoin market grew by $3.26 billion, rising from $140.82 billion to $144.08 billion by Sunday, March 3, 2024.

Throughout February, supply expansions took place in the top four stablecoins by market capitalization, with FDUSD experiencing the highest supply growth among them.

Stablecoins See Notable Growth, Tether Nears $100 Billion Cap

In the past week and throughout February, the stablecoin sector has experienced significant expansion. From February 24, 2024, the market value of stablecoins surged by $3.26 billion, achieving a 2.31% increase. By Sunday, the collective worth of stablecoins reached $144.08 billion, accounting for $60.82 billion of the global total of $110.19 billion recorded in trading volume over the previous 24 hours.

Tether (USDT) witnessed a 3.5% increase in supply over the last 30 days, approaching the significant milestone of a $100 billion market cap, with its current valuation at $99.7 billion. As of Sunday afternoon, the circulating supply of USDT was 99.44 billion. Additionally, in the same period, USDC’s supply expanded by 8%, elevating its market capitalization to $29 billion.

DAI and FDUSD Up, TUSD Struggles

DAI’s market capitalization saw a modest 2.7% increase, surpassing the $5 billion mark, while FDUSD reported a significant 26% rise in February, achieving a market value of $3.26 billion by Sunday. In contrast, TUSD, which ranks fifth in stablecoin market caps, experienced a 12.3% decrease in its supply last month. Additionally, TUSD encountered difficulties in maintaining its dollar peg, trading as low as $0.973 each last week.

As of March 4, TUSD has managed to stabilize, trading at $0.998 per unit. Tron’s USDD saw a 2.1% uptick, reaching a market cap of $735 million. Remarkably, Ethena’s USDE enjoyed a massive 374.4% growth over the past month, bringing its market value to approximately $695 million by Sunday afternoon. Meanwhile, the stablecoin Frax Dollar (FRAX) experienced a marginal 0.1% decrease in February, setting its market capitalization just below USDE at $648 million.

PYUSD and USDP Face Supply Declines

Paypal USD (PYUSD) and Pax Dollar (USDP) currently hold the ninth and tenth spots among dollar-pegged stablecoins.

This past month, PYUSD experienced its first significant supply reduction since its launch, with a 12.4% decrease, bringing its market cap down to $264 million. Concurrently, USDP saw a substantial 42.6% drop in supply in February, reducing its market value to $202 million.