Stablecoin market cap has increased for the 11th straight month, reaching an all-time high of $168 billion.
According to DefiLlama data, the total stablecoin market cap has reached an all-time high, with the last peak being in March 2022.
Crypto analysts say the market cap increase could be the result of new money flowing into the market. Source: DefiLlama
This data excludes algorithmic stablecoins, which are not pegged to external assets such as fiat currencies or gold, but instead maintain their value through algorithmic mechanisms.
The market hit an all-time high of $167 billion in March 2022, but then plummeted, falling to $135 billion by the end of that year.
Crypto analyst Patrick Scott, also known as “Dynamo DeFi,” wrote in a post on X on August 26 that he believes this is a sign that “new money is flowing into crypto.”
“And just like that, we have reached a new all-time high. The total stablecoin market cap, excluding algorithmic stablecoins, is now at an all-time high, surpassing the previous high set in early 2022,” he said.
source: Patrick Scott
He wouldn’t speculate on what’s behind the rally, but when asked by another user if institutional investment was behind the rally, he noted, “Retail has been going on in some form for at least eight months.”
Leading the stablecoin pack is Tether (USDT). At the start of the new year, USDT had a market cap of $91.69 billion.
It has shown steady monthly gains throughout 2024, and in August its market cap surpassed $117 billion for the first time.
Circle’s USD Coin (USDC) has also been on a year-long upward trend, with a market cap of over $34 billion, a 2024 high. However, it is still far from its all-time high of $55.8 billion in June 2022.
According to a CCData report, stablecoin trading volumes fell 8.35% in July to $795 billion, driven by a decline in trading activity on centralized exchanges.
The report cited the regulatory landscape for crypto assets, which has raised concerns about the future of USDT in Europe, as a factor in the decline in stablecoin trading activity on centralized exchanges throughout July.
This trend has continued into August, with market volume now sitting at just over $46 billion, according to CoinMarketCap.
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