Stablecoin market hits record $224B as USDC gains ground over USDT

The stablecoin market hit a peak record of $224 billion, with USDT and USDC contributing the most to the growth.

According to the popular cryptocurrency data aggregator CoinMarketCap , USDC is continuously gaining ground over multiple other stablecoins.

USDC and USDT have seen incredible growth since 2023

The stablecoin market rose by over 84% from $121.18 billion in August 2023 to its current $224 billion. Currently, its market cap has increased by over 0.14% in the last 24 hours, and its trading volume is at $112 billion, a 16% surge.

Tether’s USDC and USDT have grown the most since 2023, while the rest of the market showed steady average growth.

USDT has the highest market cap at $139 billion; however, USDC has recently been gaining an edge over other stablecoins.

Alphractal believes USDC has gained popularity following the recent decline in altcoins, as a significant portion of sell-offs have been converted into USDC.

Conversely the platform added that a decline in dominance could open the door for new market highs.

USDC’s market is close to hitting $55 billion

USDC’s market cap is $53.33 billion, a 120% increase from $24.1 billion on November 14, 2023. As of January 31, it held a market share of 24.6%.

Its trading volume is at $8.855 billion, down from its $20 billion all-time high on January 18.

The token also showed a 78% year-over-year growth in circulation. As of January 30, stablecoin issuer Circle released roughly 3.4 billion USDC, redeemed about 2.3 billion USDC, and increased circulation by about 1.2 billion in just seven days. Currently, over 53 billion USDCs are in circulation.

However, both USDT and USDC will probably see a change in their European markets, with Crypto.com delisting them. Crypto.com has decided to leave the two stablecoins, following the European Union’s Markets in Crypto-Assets Regulations (MiCA). 

In addition to USDT and USDC, the platform has also delisted Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), and PayPal USD (PYUSD). So far, the platform has all of these token purchases; however, users can still make withdrawals until the end of the first quarter of 2025.

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