Stablecoins Now At $187 Billion, UST And USDN Volume On The Rise

Christian Encila

Last Updated: June 11, 2024 2:18 pm

2 mins read

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There has been fast growth in the stablecoin economy, with a recent total of $187 billion, which is quite near the $200 billion thresholds.

Stablecoins like Terra’s UST and Neutrino Protocol’s USDN are gaining popularity even as Tether remains the most widely used.

They experienced a nearly 30% and a 44% rise in issuance in the previous month, respectively. In other words, if this trend continues, it will easily surpass $200 billion in the following months.

Stablecoins Strong USD Backing

Compared to other digital currencies, stablecoins are designed to be precisely that: stable.

Some coins are tied to the US dollar, implying that each one is fully backed by a dollar’s worth of cash, Treasury securities, or other secure assets and may thus be redeemed at will.

A tenth of all digital assets, including cryptocurrencies, are represented by these tokens.

UST total market cap at $14.68 billion on the daily chart | Source: TradingView.com

Tether At $80 Billion

The largest stablecoin by market value, Tether has had its supply rise by 2% in the previous month and now stands at over $80 billion.

The stablecoin market is dominated by USDT, with a 43.78% share. Furthermore, it is the third-largest cryptocurrency, behind Bitcoin and Ethereum, in terms of market valuation.

Following Tether, we have USDC or the USD coin, which has a market capitalization of $52.5 billion, making it a significant part of the total market.

Tether accounts for 28% of the stablecoin economy and is the fifth-largest cryptocurrency after Binance Coin (BNB), which is ranked fourth.

Stablecoins Advancing

Investors have great expectations for Terra’s UST, one of the fastest-growing stablecoins, and the Luna and UST projects as well. Market capitalization is currently $14.7 billion, up nearly 30% in the previous month.

USDC frequently trades with Tether, accounting for 65% of Monday’s tether swaps. Tether is followed by BUSD, USD, EUR, and WETH as the top pairs trading with USDC.

While USDT and USDC saw no significant increases in the last month, UST, FRAX, and USDN were up in their 30-day issuance rates.

Terra’s UST increased by nearly 30%, and the stablecoin now has a market capitalization of approximately $15 billion.

More Room For Growth

Last month, FRAX, the first fractional-algorithmic stablecoin protocol, saw its 30-day issuance rate increase by 9.5%, and Neutrino Protocol’s USDN climbed by 44%.

Stablecoins Facilitate Faster Trading

Meanwhile, Stablecoins Like UST and USDN is primarily used today to facilitate trading other, more volatile digital assets, such as Bitcoin.

However, companies around the world are working to develop stablecoins that businesses and households can use to conduct transactions, which could help make the payment system faster, more resilient, and more inclusive.

Featured image from Bitcoin News, 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.

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