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Stablecoins are dominating tokenization, with a market cap of $315.62 billion as of press time. Tether’s $USDT continues to be the dominant stablecoin with 59%, seconded by Circle’s $USDC at 24%.
However, the stablecoin sector has seen a massive spike as institutions like PayPal have transitioned to accepting crypto, thus launching $PYUSD.
$PYUSD’s cap drops sharply as $USDC’s largest transfer
Recent analysis shows that PayPal’s $PYUSD was tumbling despite making an all-time high of $4.20 billion in market cap in March.
$PYUSD has since been contracting, with the market cap collapsing about 35%. Its cap now trades at $2.47 billion, with $1.80 billion on the Ethereum [ETH] network.
On Solana [SOL], Arbitrum One [ARB], and Stellar Lumens [XLM], the caps were $703 million, $261 million, and $3 million, respectively, in resistance.
While $PYUSD was losing its cap, Circle made its largest transfer in history. The transaction involved sending $4.40 billion $USDC to the Coinbase Hyperliquid deployer.
The move changes liquidity depth, stablecoin flows, and trading activity on both Coinbase and HyperliquidX [HYPE].
On top of that, Circle minted $750 million in $USDC on Solana in the past 24 hours. Hence, its market cap sits at $74.78 billion.
$USDT and $USDC to continue dominating stablecoin sector
In this context, $USDT and $USDC remain the dominant stablecoins. For instance, $USDC’s asset transfer count for the past week was at $133.6 million, slightly less than $USDT’s $176.9 million.
Overlaying $USDT’s data against stablecoin issuers, its weekly asset transfer count was 176 million, compared to 392 million. This further affirmed the dominance of $USDT and $USDC in this sector.
Over the past month, the $USDC asset transfer count was up 27% to $466 million, while $USDT grew by 2.1% to around $1.40 trillion.
Holders of $USDT had grown by more than 5%, while those of $USDC increased by 4.7%.
Stablecoin market cap projection
Currently, the stablecoin market cap is not limited to USD alone; it is expanding into other currencies, including the Euro and Yen, among others.
That has prompted Dragonfly’s Rob Hadick to predict a potential 10x growth as payment adoption expands. He argued that they collapse the existing infrastructure that includes banks and reduce dependency on intermediaries.
For instance, Tempo, which is a payment infrastructure, saw its stablecoin supply surge by 35% in a week. Its total reached $30 million, but it remained small.
Final Summary
- PayPal’s $PYUSD market cap collapses by 35% as Circle’s $USDC makes the largest transfer in history of $4.4 billion.
- Data shows that Tether and Circle may continue to dominate the stablecoins amid a projected 10x growth in the sector.