According to DefiLlama data, the total stablecoin market cap, excluding algorithmic stablecoins, hit an all-time high over the weekend.
The market cap of stablecoins expanded 0.8% last week to $168.1 billion, surpassing the previous high of around $167 billion set in March 2022.
Market cap began to decline over the next few months after its March 2022 peak, hitting a low of around $122 billion in October. According to DefiLlama data, stablecoin market cap has continued to grow since early 2024.
Rachel Lucas, a crypto analyst at BTCMarkets, told The Block that the rising stablecoin market cap could indicate that cryptocurrencies are attracting more money from institutional investors.
“Traditionally, the demand for stability in uncertain market conditions has driven investors to stablecoins as a safe haven,” Lucas said. “Alternatively, the growth in stablecoin market cap could reflect growing confidence in the cryptocurrency markets, particularly among institutional investors.”
Lucas added that stablecoins are increasingly being used by institutional investors as a bridge between TradFi and cryptocurrencies. “This trend demonstrates a broader shift towards incorporating stable digital assets into trading strategies and long-term portfolios.”
meantime, 
USDT
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The largest stablecoin, USDT, has seen its market cap grow by about 28% this year, growing from $91.68 billion at the beginning of the year to $117.84 billion today. USDT now accounts for about 70% of the total market cap, according to DefiLlama data.
Circle’s USDC has seen some fluctuations in its market cap, but it has been on an upward trend in 2024, growing from $23.8 billion in early January to $34.4 billion currently.
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