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On September 27, CCData Research unveiled the September 2024 edition of its “Stablecoins & CBDCs” Report, providing a comprehensive overview of recent trends and market dynamics within the stablecoins and central bank digital currencies (CBDCs) sectors.
CCData, authorized by the Financial Conduct Authority (FCA) as a benchmark administrator, is a prominent provider of institutional-grade digital asset data. By leveraging tick data from globally recognized exchanges and integrating multiple datasets, CCData delivers a comprehensive market overview, including trade, derivatives, order books, as well as historical, social, and blockchain data.
Stablecoin Market Cap Rises for the 12th Consecutive Month
In September 2024, according to CCData, the stablecoin market saw a continued upward trend, marking the twelfth consecutive month of growth in its total market capitalization. Rising by 1.50%, the stablecoin market cap reached $172 billion. Despite this steady increase, the market still remains below its pre-May 2022 levels, when the Terra Luna de-peg caused significant disruptions. While market capitalization climbed, stablecoin trading volumes took a downturn, with $683 billion in volume recorded as of the 23rd of September.
Digital Yuan Transaction Volume Crosses 7tn RMB
Per the CCData report, the digital yuan continued its rapid expansion in China, reaching a cumulative transaction volume of 7 trillion RMB (approximately $988 billion) by the end of June. This represents a month-on-month growth of 6.10% and a nearly 300% increase compared to the transaction volume recorded in June 2023. The digital yuan’s rising volume underscores China’s strong push towards its central bank digital currency (CBDC), as reported by the People’s Bank of China.
EURCV Expands to Solana Blockchain
The CCData report also mentioned that Societe Generale’s EURCoinVertible (EURCV) stablecoin is now set to be deployed on the Solana blockchain. This decision follows a lack of demand for EURCV on the Ethereum network. Despite the expansion, trading volumes remain relatively low, with EURCV’s on-chain transfer volume reaching just $2.79 million, and centralized exchange volume at $290,000 as of the 24th of September. This move aims to boost EURCV’s utility and adoption within the decentralized finance (DeFi) space.
Fed Interest Rate Cuts to Impact Stablecoin Revenues
Finally, CCData predicted that the U.S. Federal Reserve’s decision to cut interest rates by 50 basis points would have a direct impact on centralized stablecoins. According to the report, this rate cut is projected to reduce interest income by $625 million annually for the top five centralized stablecoins—USDT, USDC, FDUSD, PYUSD, and TUSD. These stablecoins collectively hold $125 billion in U.S. Treasury assets, and the cut in rates is expected to diminish their returns on these holdings, affecting overall revenue.
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