en
Back to the list

Stablecoin Injected with Over $4.2B Amid Bull Market Frenzy

source-logo  coinedition.com 10 April 2024 16:08, UTC

The influx of capital into stablecoins has surged, with a staggering $4.21 billion injected into dollar-pegged cryptocurrencies within the last ten days. According to data from DefiLlama, the stablecoin market was about $150.42 billion as of Apri 1. The figure has grown by $4.21 billion to hit $154.63 at press time.

Of the $4.2 billion influx, Tether, the most prominent stablecoin issuer, accounted for $2.4 billion in USDT. Notably, most of the USDT tokens were issued via the Tron blockchain. At press time, Tether commands $107.28 billion of the stablecoin market.

However, Circle’s USDC, while maintaining its standing as the second-largest stablecoin, has seen comparatively modest growth. While stalwarts like USDT and USDC remain dominant, new contenders are gaining traction.

For instance, First Digital USD (FDUSD) grew from $2.17 billion at the end of March to about $3.14 billion as of April 6. This growth marked a 44.7% gain in under seven days. Notably, FDUSD’s uptick is fueled partly by Binance’s launchpools, which incentivize users with allocations of newly launched tokens.

Meanwhile, Ethena Labs’ USDe has emerged as the most prominent contender in the past few days. It cracked a $2 billion valuation in April from below $600 million at the start of March. At press time, USDe boasted a total circulation of $2.315 billion.

Unlike traditional stablecoins backed by fiat reserves, USDe relies on futures contracts. This offered users opportunities for yield generation and participation in Ethena’s short positions. Moreover, Ethena offers avenues for users to generate stablecoins by leveraging assets like staked Ether and Wrapped Bitcoin.

Notably, the observed surge in stablecoin creation has propelled the supply to levels not seen since early 2022. This comes above the emerging bull market, with Bitcoin recently reclaiming the $70K threshold.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

coinedition.com