Stablecoin Market Sees Mixed Performances in December
Despite a decline in the stablecoin market throughout 2022, it rebounded towards the end of 2023, reaching levels not seen since May. However, among the top ten stablecoins by market capitalization, only two experienced an increase in supply over the last 30 days. Tether (USDT), the largest stablecoin, saw a 2.5% growth in supply during the period. It currently holds a market capitalization of $91.86 billion.
Performance of Other Stablecoins
USDC saw a slight 0.2% decrease in supply, while DAI experienced a 1.7% decline. Trueusd (TUSD) had a significant 22% contraction in its supply during December. On the other hand, first digital usd (FDUSD), the fifth-ranked stablecoin, surged by 85.7%, now valued at $1.8 billion. BUSD noted a supply reduction of about 39%, with a market cap of just over $1 billion. Tron’s USDD also saw a 1.3% decrease in supply in the past month.
Declines and Increases in Other Stablecoins
FRAX and USDP experienced declines ranging from 3.2% to 16.7%. In contrast, Paypal’s PYUSD recorded a significant 68.8% increase, surpassing liquity usd (LUSD). PYUSD’s total supply now exceeds 264 million units. In the last 24 hours, the global trade volume has reached around $64 billion, with stablecoins accounting for over $42 billion. This indicates that stablecoins are used in more than six out of ten trades.
Diverse Developments in Stablecoin Supplies
While some stablecoins have seen a contraction in supply, others have experienced significant growth, contributing to the expanding crypto economy. PYUSD introduced by Paypal stands out alongside FDUSD, which has shown impressive growth throughout 2023. Despite losing a significant portion of its supply, BUSD continues to have strong daily trading volumes.
Hot Take: Stablecoin Market Sees Mixed Performance During December
The stablecoin market experienced varied performances in December, with only a few stablecoins witnessing growth in supply. Tether and the newcomer, first digital usd, were the only top stablecoins to experience increases. While some stablecoins declined in supply, others saw considerable growth, indicating the evolving nature of the crypto economy. With the introduction of new stablecoins and the continued dominance of established ones like Tether, the stablecoin market remains an integral part of cryptocurrency trading.
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