Stablecoin market capitalization has reached its highest level since April 2022, following eight consecutive months of growth, according to a new report from CCData.
The cryptocurrency analysis platform reported on May 29 that the stablecoin market capitalization reached $161 billion, up 0.63% from the beginning of the month. However, stablecoin market dominance fell slightly from 7% in March to 6.07%.
“This decline highlights the recovery in prices of leading crypto assets and reflects improved market sentiment following the unexpected approval of a spot Ethereum ETF in the United States.”
Among the top 10 stablecoins, Athena USDe’s market capitalization rose for the fifth consecutive month, increasing 11.6% to $2.61 billion. CCData explains that this increase is due to the expanded use of Bybit as collateral for perpetual transactions.
Tether (USDT), the largest stablecoin by market capitalization, recorded its highest market capitalization ever at $111 billion as of May 29, increasing its dominance in stablecoin market capitalization to 69.3%.
BlackRock’s tokenized fund token, BUIDL, soared 19.6% to $448 million, surpassing Franklin Templeton’s BENJI to become the largest tokenized treasury fund. BUIDL represents shares of BlackRock’s USD Institutional Digital Liquidity Fund and is exchangeable 1:1 for USDC.
The report also revealed that Circle’s USDC (USDC) market capitalization in May increased for the sixth consecutive month to $32.6 billion.
This increase coincides with increased demand, with the USDC pair hitting an all-time high in monthly trading volume in March. USDC’s market share based on trading volume rose for the second month to 8.27%.
The report notes that USDC has benefited from increased on-chain transaction activity on networks such as Base and Solana, with the USDC supply percentage of these chains increasing to 9.29% and 7.78%, respectively.
Despite the increase in market capitalization, stablecoin trading volume on centralized exchanges fell to a monthly low of $829 billion on May 23.
“In the two months following the Bitcoin halving, trading activity on centralized exchanges declined historically,” the report noted.
Overall, the CCData report concludes that the overall market capitalization of stablecoins has now recovered from the losses incurred following the collapse of the Terra Luna ecosystem and the nearly 100% depeg of algorithmic stablecoin TerraClassicUSD (USTC) that triggered a 17-month decline. .
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