Tether and First Digital USD Experience Supply Increases
The stablecoin market, measured by market capitalization, ended 2023 with a total value of approximately $131.69 billion. However, only two of the top ten stablecoins saw an increase in supply over the last 30 days. Tether (USDT), the leading U.S. dollar-pegged cryptocurrency, observed a 2.5% uptick in its supply, while the newcomer, First Digital USD (FDUSD), enjoyed a significant 85.7% rise.
Market Decline and Rebound
Although the stablecoin market experienced a decline throughout 2022, it started to rebound towards the end of 2023, reaching heights not seen since May of that year. Despite this overall trend, only two stablecoins among the top ten by market capitalization saw an increase in supply over the last month. From December 1, 2023, to January 1, 2024, Tether (USDT) witnessed a 2.5% boost, making it the largest stablecoin with a market capitalization of $91.86 billion.
Other Stablecoin Performances
While Tether showed an increase in supply, other stablecoins experienced different performances. USD Coin (USDC) saw a slight 0.2% dip, and DAI encountered a 1.7% decline. TrueUSD (TUSD), which is pegged to the U.S. dollar, underwent a 22% contraction in its supply during December. On the other hand, First Digital USD (FDUSD), the fifth-ranked stablecoin, surged by 85.7%, now boasting a market valuation of $1.8 billion. Binance USD (BUSD) noted a supply reduction of approximately 39% last month, with its market cap hovering just above $1 billion. Tron's USDD also saw a downtick, with 1.3% of its total supply diminishing in the past 30 days.
Other Notable Changes
FRAX and USDP experienced declines ranging from 3.2% to 16.7%. However, Paypal's new stablecoin PYUSD saw a significant 68.8% increase, surpassing Liquity USD (LUSD) this month. As of January 1, PYUSD's total supply exceeded 264 million units. In the last 24 hours, the global trade volume reached around $64 billion, with stablecoins accounting for over $42 billion of that activity. This suggests that stablecoins are used in more than six out of every ten trades.
Contractions and Growth in the Stablecoin Market
In the past month, several stablecoins experienced a contraction in supply, while others showed considerable growth, indicating the diverse paths of the crypto economy. PYUSD, introduced by payment giant Paypal, stands in contrast to the rapidly growing FDUSD, which has seen impressive expansion throughout the end of 2023. Additionally, BUSD, despite losing a significant portion of its supply over the past year, continues to maintain strong daily trading volumes.
What are your thoughts on the stablecoin market's performance in December? Share your opinions and insights in the comments section below.
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By: Jamie Redman
Title: Stablecoin Market Shows Mixed Performance in December 2023
Sourced From: news.bitcoin.com/paypal-and-first-digital-stablecoins-dominate-in-december-as-binance-usd-heads-toward-extinction/
Published Date: Tue, 02 Jan 2024 16:30:40 +0000
