The stablecoin market capitalization has reached a new all-time high of $168 billion, marking 11 consecutive months of growth, according to data from DeFiLlama. This surpasses its previous peak of $167 billion in March 2022.
Crypto analyst Patrick Scott, known as “Dynamo DeFi,” commented on the milestone in an Aug. 26 post on X, stating, “New money is entering crypto.” He added,
“And just like that, we’re at a new all-time high. Total stablecoin market cap, excluding algorithmic stables, is now at the highest point ever, surpassing its previous high from early 2022.”
The current data excludes algorithmic stablecoins, which maintain their value through algorithmic mechanisms rather than being pegged to external assets like fiat or gold. The stablecoin market had reached its previous high in March 2022, but soon after, it plummeted to $135 billion by the end of that year.
While Scott did not speculate on the precise cause of the uptick, he noted that “Retail has been in some form for at least eight months,” in response to a query on whether institutional investment was driving the surge.
Tether (USDT) has led the stablecoin market throughout 2024, starting the year with a market cap of $91.69 billion and steadily climbing to over $117 billion by August. Circle's USD Coin (USDC) also saw gains this year, peaking at over $34 billion in market cap, though it remains below its all-time high of $55.8 billion in June 2022.
Despite these gains, a report by CCData highlights a decline in stablecoin trading volumes, which fell 8.35% to $795 billion in July. The decline is attributed to reduced trading activity on centralized exchanges and concerns raised by the Markets in Crypto-Assets Regulation about the future of USDT in Europe. This downward trend in trading volume has continued into August, with the market's trading volume currently just above $46 billion, according to CoinMarketCap.
