Stablecoins Total Market Cap Breaches $179 Billion Mark – Can It Go Higher?

Christian Encila

Last Updated: June 11, 2024 2:11 pm

2 mins read

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Stablecoins, the digital currency that is the talk of the town, are gradually taking over the crypto world as more users and corporations vie for its benefits.

Such news doesn’t come as a surprise anymore. As the total value of the world’s 12,333 digital currencies approaches $1.8 trillion, the stablecoin economy has recently grown to $179 billion, or nearly 10% of the total crypto economy.

This record has been much quicker to attain compared to last year, where it took around two months to see the transfer volume surpass $150 billion. In 2020, it took nine months to surpass this milestone. As for 2019, it lasted an entire year.

What Are Stablecoins?

The volatility of tokens has always been one of the major challenges to cryptocurrency investing. Bitcoin, for example, can drastically change in value by the minute.

Stablecoins are established to tackle that problem surrounding blockchains; it aims to keep track and match the value of the fiat currency US dollars (USD).

Tether (USDT), the first established stablecoin and still the most successful to this day, was merely introduced as a digital token with “a stable price.”

This works as the Tether Foundation keeps 1 USD in reserve for every USDT issued, keeping its price stabilized around $1 since each unit of USDT could be redeemed for one of the US dollars in the reserve.

USDTUSD trading at 1.00080000 on the daily chart | Source: TradingView.com

Tether began with very little resources, having gotten little exposure from the public.

However, as Bitcoin’s price began to rise in 2017 and the risk brought by volatility became greater, Tether was also catapulted to the mainstream.

From its $1 million-mark in 2016, it surpassed a little less than $10 million in January 2017. By January 2018, as bitcoin’s price was skyrocketing to $20K, the Tether coin supply had ballooned to more than $1.4 billion.

Projected Growth

Many crypto enthusiasts and analysts point out that stablecoins are gaining momentum because their total supply is increasing marginally.

Most stablecoins are issued and backed by third parties, guaranteeing legitimacy on the side of customers. Some of the popular stablecoins along with Tether are Center’s USD Coin (USDC) and Binance’s BUSD, accounting for a little less than the entire supply of the digital token.

USDT is the leading stablecoin with a market cap of almost $78 billion, followed by USDC at almost $51 billion market cap.

It is because of stablecoins’ cryptographic security and programmability that the robust use cases currently driving the use of stablecoins are supported.

We can expect to see more innovation and growth in payment systems as a result of the use of stablecoins in the future.

Related Reading | Tethered Up: How Stablecoins Plan To Stay Stable

Image from CoinGeek, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.