Major Shifts In The Stablecoin Market: September 2024 Update

The stablecoin market has grown exponentially, becoming a crucial component of the cryptocurrency ecosystem. From a modest $1 billion supply in 2018, the stablecoin market has expanded to over $160 billion by 2024.

This massive growth underscores the critical role stablecoins play in providing liquidity, stability, and utility for numerous blockchain projects.

USDT and USDC: Dominating the Market

Tether (USDT) and USD Coin (USDC) remain the top two stablecoins. As of September 2024, USDT has a commanding market capitalization of $118.46 billion, far surpassing USDC’s $35.27 billion. USDT also leads in transaction volume and active users, particularly on the Ethereum network, where it boasts over 107,000 active addresses compared to USDC’s 37,780. This demonstrates a clear preference for USDT, driven by its perceived stability and widespread use.

Stablecoin Market Sees Major Shifts in September 2024

The stablecoin market has grown significantly, becoming a key part of the #cryptocurrency world.

Back in 2018, the total supply of stablecoins was just $1 billion, but by 2024, it has skyrocketed to over $160 billion.… pic.twitter.com/xgbEGfBtSl

— CryptoTvplus (@Cryptotvplus) September 23, 2024

Impact of Silicon Valley Bank’s Collapse

The collapse of Silicon Valley Bank in March 2023 had a significant impact on the stablecoin market, particularly USDC. As USDC’s market share shrank, USDT’s supply surged, reflecting a shift in user confidence toward USDT during times of financial uncertainty. This event reinforced USDT’s position as the go-to stablecoin in times of crisis.

DAI’s Dominance in On-Chain Trading

DAI has emerged as a leader in on-chain trading volume, with an impressive $370.43 billion in September 2024—well above USDC’s $156.27 billion and USDT’s $111.13 billion. DAI’s success highlights its growing role within decentralized finance (DeFi) platforms, where it has become a key asset.

Whale Activity in Stablecoins

Large transactions, typically over $100,000, dominate the volume for stablecoins like DAI, FDUSD, and USDE, indicating that institutional investors or “whales” are driving much of the activity. Meanwhile, stablecoins like TUSD and BUSD have a more balanced user base with fewer large-scale transactions.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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