Stablecoin Market Grows by $1.3B in 5 Days as Tether Leads the Charge

Over the past five days, the stablecoin market has continued its upward trend, increasing by $1.3 billion in value. The largest stablecoin network by market capitalization, tether ($USDT), experienced an expansion of 820 million in supply during this period.

Tether’s Supply Swells by 820M Amid $1.3B Stablecoin Market Boost

The stablecoin economy is gaining momentum again, nearing the all-time highs it saw before the collapse of Terra’s UST. At that time, the stablecoin market was around $188 billion. Today, the fiat-pegged market stands at $169.72 billion. Tether continues to grow significantly; in the last five days alone, $USDT’s supply surged by 820 million, with its market cap climbing from $116.88 billion to the current $117.70 billion.

Since Jan. 1, 2024, $USDT’s market cap has grown by $25.96 billion, rising from $91.74 billion to its current level. Another stablecoin on the rise is First Digital’s $FDUSD, which added 280 million to its supply in just one day. Over the past week, 710 million $FDUSD was added to the market. Meanwhile, Paypal’s $PYUSD, the sixth-largest stablecoin by market cap, is also experiencing growth.

$PYUSD is approaching the $1 billion mark for the first time, with its market cap at $981.69 million on Friday, Aug. 23. In the past 24 hours, more than 15 million $PYUSD tokens were issued, and in the last week, its supply grew by 190 million more tokens. Aave’s GHO also saw modest growth, with a $4 million increase over the past week.

While some stablecoins saw their supplies grow, others experienced reductions, resulting in a net increase of $1.3 billion over the past 120 hours. As the market inches closer to its previous peaks, stablecoins continue to play a crucial role in the broader cryptocurrency ecosystem, reflecting ongoing demand for digital financial stability.