USDT and USDC Make Up Half of Crypto Transaction Volume

The market for stablecoins is expanding, enhancing liquidity and bringing more stability to the cryptocurrency landscape. This expansion is particularly evident with the top two stablecoins, Tether USD (USDT) and USD Coin (USDC), which now account for a significant share of the transaction volume within the crypto market.

A tweet from the decentralized finance analytics platform IntoTheBlock indicated that USDT and USDC together represent approximately 50% of total transaction volume among major cryptocurrencies. Analysts at IntoTheBlock pointed out that this trend underscores the vital role stablecoins play in the cryptocurrency ecosystem.

Stablecoins Are On the Rise

Since the beginning of this year, stablecoins have reached numerous significant milestones. In August, their overall market capitalization hit a record high of nearly $170 billion, showcasing the increasing acceptance of these digital currencies and the acknowledgment of their benefits. Data from CoinMarketCap reveals that the market cap has surpassed $172 billion as of the time of this writing.

Crypto developers are progressively incorporating stablecoins into existing payment infrastructures, fostering greater use cases for digital assets in traditional financial sectors.

Stablecoins are now utilized for remittance transactions and simplifying cross-border payments. This growth has drawn more users to the ecosystem, boosting the supply of stablecoins and paving the way for the rise of new participants like Ripple. Furthermore, this growth indicates an increase in institutional interest and a flow of more investments into cryptocurrency.

USDT and USDC Maintain Their Lead

As stablecoin development continues unabated, assets such as USDT and USDC have remained at the forefront. USDT currently comprises nearly 70% of the stablecoin market capitalization, having increased from $92 billion at the start of the year to $119 billion at the current time.

Conversely, USDC has also experienced considerable growth since the year’s outset, showing an over 41% rise from $24 billion in early January to $34.75 billion as of October 18.

Jeremy Allaire, CEO of Circle, the issuer of USDC, remarked four months ago that stablecoins could make up at least 10% of global economic money within the next decade, as these assets have the potential to transform finance, commerce, and governance. According to Allaire, the crypto industry is still in its nascent phase, and stablecoins might serve as a catalyst driving substantial advancements and swift adoption.