Stablecoin market surges past $160 billion, reaching a two-year peak

Tether’s $USDT has propelled the stablecoin market to over $160 billion in value, its highest point since the collapse of Terra’s UST. According to IntoTheBlock, $USDT now comprises over 70% of the stablecoin market, maintaining this dominance throughout 2024. The stablecoin has also recorded all-time low volatility in July, despite broader market retractions.

$USDT’s on-chain metrics show significant growth, with over 18 million weekly transactions on Ethereum Virtual Machine-compatible chains alone. The Tron network handles 78% of these transactions, becoming the preferred platform for $USDT transfers.

Notably, $USDT surpassed Circle’s USD Coin ($USDC) in monthly transfer volume for the first time in 2024, according to data from Artemis. In July, Tether’s stablecoin reached $721.5 billion in volume, surpassing $USDC by 17.7%.

PayPal’s PYUSD has surpassed $620 million in market cap within its first year, contributing to the overall stablecoin market growth. This expansion indicates increased liquidity flowing into the crypto-economy.

Tether has expanded access to US dollars, with 48 million addresses holding $USDT. Of these, 84% are on the Tron network, further cementing its position as the dominant platform for $USDT transactions.

Moreover, Tether reported a record $5.2 billion profit in the first half of 2024, as $USDT approaches a $120 billion market cap.

Despite past controversies, $USDT has demonstrated resilience and continues to lead in real-world crypto adoption.