- Stablecoin market cap rose 0.05% in October to $173 billion, marking the 13th consecutive month of increase since September 2023.
- Tether became the first stablecoin to surpass a $120 billion market cap, holding 69.9% of the stablecoin market share.
- Sky's USDS also became the second-fastest stablecoin to reach a $1 billion market cap in just 13 days.
The stablecoin market capitalization continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Stablecoin market sees increased trading activity as uptrend continues
In its latest report, CCData indicated some of the major trends in the stablecoin market in October, with the sector seeing an increase in market cap, rising 0.05% to $173 billion.
This marked the 13th month of a steady increase in the stablecoin market since September 2023. The data also shows that this has been the slowest month in the 13 months since the last market cap decline.
The increase points to growing demand and confidence in stablecoins, particularly in older projects like Tether's USDT.
Stablecoin trading volumes across centralized exchanges declined by 1.49%, reaching $899 billion as of October 27.
Despite this dip, the upward trend in trading volumes has reached figures last seen before Terra's UST collapse. This could imply that participants are increasingly leveraging stablecoins for trading and investment in the crypto market.
Meanwhile, USDT stablecoin crossed $120 billion in its market cap, becoming the first stablecoin to achieve this milestone.
Moreover, USDT's market share among centralized exchanges rose to 79.1%, reflecting its dominance in the stablecoin market. This includes 65% of all spot trading activity and 80% share among derivatives.
Additionally, Sky's USDS became the second fastest stablecoin to hit a $1 billion market cap. It achieved this record in 13 days, beaten only by FEI, which realized a $2.15 billion market cap at launch.
The general increase in the stablecoin market cap suggests that liquidity is rising to fuel more demand, which may lead to higher crypto prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off
Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration
In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.
Bitcoin dives 3% from its recent all-time high, is this the cycle top?
Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.