As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the evolution of digital assets from their infancy to the behemoth they are today. The latest surge in stablecoin trading volume, as reported by CCData, is yet another testament to the growing institutional confidence in this burgeoning industry.
The increased trading activity in November has boosted the demand for stablecoins, with this trend being driven by growing institutional trust in the digital asset sector.
Based on a CCData report dated November 27, the trading volume for stablecoins experienced a significant surge of approximately 77.5%, reaching an impressive $1.81 trillion as of November 25. This upward trend suggests that monthly trading volumes on centralized exchanges are set to reach their peak annual value.
In November, the overall value of stablecoins saw a 9.94% increase over its fourteen-month climb, hitting a record $190 billion. This surpassed its previous peak of $188 billion set in April 2022 before the fall of TerraUSD. However, this growth led to a decrease in market dominance from 7.22% in October down to 5.54%. This reduction occurred as more investors and traders started diversifying their investments, shifting focus towards Bitcoin (BTC) and other alternative cryptocurrencies.
Tether (USDT) continues to show a strong performance, growing its market capitalization by 10.5% to $133 billion. The stablecoin accounts for 69.9% of the overall market, followed by Circle’s USD Coin (USDC), which expanded its market cap by 12.1% to $38.9 billion in November — its highest level since February 2023.
Ethena Labs’ USDE (USDE) is experiencing growth, with a 42.2% increase in market capitalization now standing at $3.86 billion. The increased demand for this stablecoin can be linked to a growing interest in the Ethena ecosystem following their proposal to provide revenue sharing for Ethena (ENA) token holders, according to the report.
In February, the USD-backed digital currency (USD Stablecoin) was introduced, and it now provides an Annual Percentage Yield (APY) of 21.2%. This is lower than its peak of 55.9% in March, as reported by CCData.
In contrast, First Digital USD (FDUSD) and Sky Dollar (USDS), previously known as Dai (DAI), experienced the largest decreases among the top ten stablecoins last November. The market cap of FDUSD dipped by 14.9% to reach $1.90 billion, while USDS declined by 8.34% to settle at $950 million over the course of the month.
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2024-11-27 20:04