The stablecoin market is experiencing a resurgence, reaching a market capitalization of $161 billion in May 2024. This marks the highest level since April 2022 and follows eight months of steady growth, according to data from CCData.
While the overall market share of stablecoins dipped slightly compared to March, Tether (USDT) remains the king of the stablecoin hill. Its market cap reached a record high of $111 billion, boosting its dominance to 69.3%.
Several other stablecoins are experiencing notable growth. Circle’s USDC saw its market cap climb to $32.6 billion, coinciding with increased demand and on-chain activity. BlackRock’s tokenized fund, BUIDL, also surged, becoming the largest treasury fund in the space.
The stablecoin market’s rebound comes after a significant downturn caused by the collapse of the Terra Luna ecosystem in 2023. However, regulatory uncertainty remains, with concerns surrounding the upcoming Markets in Crypto Assets (MiCA) regulations in Europe.
The report also touches on Central Bank Digital Currencies (CBDCs). While the US has shown resistance to issuing its own CBDC, Brazil’s pilot program has been postponed, and adoption of Nigeria’s e-Naira remains sluggish.
