Key Updates

Key Findings

Stablecoin Market Cap Rises For the 11th Consecutive Month

In August, the total market capitalisation of stablecoins rose 2.89% to $169bn, recording the eleventh consecutive increase in the end-of-month market cap. This is the highest end of month market capitalisation recorded since April 2022.

This also represented an all-time high market capitalisation for the asset class, excluding algorithmic stablecoins.

USDT to Launch GBTP and AEDT Tokens

In August, USDT's market capitalisation reached a new high of $117 billion, up 2.59%. Tether announced plans to launch stablecoins pegged to the Sterling (GBPT) and Dirham (AEDT), its seventh and eighth offerings.

This follows USDT, EURT, CNHT, MXNT, XAUT, and aUSDT, with circulating supplies of $117 billion, $30.1 million, $177,000, $19.6 million, $620 million, and $19.1 million, respectively.

PayPal’s PYUSD Sees Surge in Market Cap and Trading Volume

In August, the market capitalization of PayPal USD increased by 56.6% to $960 million, achieving its fifth consecutive month of growth and reaching a new all-time high.

This positions it as the sixth-largest stablecoin by market capitalization. The recent rise in demand is likely driven by appealing incentives available on decentralized lending protocols for PYUSD.

EURC Demand Surges Followings MiCA Regulations

The market capitalisation of Euro Coin (EURC) surged by 71.3% to $53.7mn in August, recording the highest market capitalisation for the stablecoin since October 2022.

Demand for the stablecoin in centralised exchanges has increased since the implementation MiCA regulations, with the monthly volumes for EURC trading pairs rising for the third consecutive month, trading $36.7mn.

Stablecoins Market Cap & Volumes

● In August, the total market capitalisation of stablecoins rose 2.89% to $169bn, recording the eleventh consecutive monthly increase in market capitalisation. This is the highest market capitalisation for stablecoins since April 2022. This also represented an all-time high market capitalisation for the asset class, if algorithmic stablecoins are excluded.

● Stablecoin market dominance is currently at 7.59%, rising from 6.88% in August. This is the third consecutive increase in stablecoin dominance and the highest since January.

● Stablecoin trading volume fell 14.2% to $848bn in August (as of the 23rd). Trading volumes are on track for a second consecutive monthly increase, driven by volatile digital asset prices following the unwinding of the Japanese Yen carry trade and recovery in TradFi markets.

Stablecoins Overview: Top 10 Stablecoins

● In August, the market cap of TetherUSD (USDT) rose by 2.59% to $117bn, another new all-time high for the stablecoin with its twelfth consecutive monthly increase in market capitalisation. The market dominance of USDT is currently at 69.6%.

● The market capitalisation of USD Coin (USDC) rose 3.14% to $34.2bn, recording the highest market capitalisation since February 2023. PayPal USD continued to be the largest gainer among the top ten stablecoins, rising 17.9% to $589mn, another new all-time high for the stablecoin.

● Meanwhile, First Digital USD (FDUSD) saw its market capitalisation rise by 48.5% to $2.43bn, recording the first increase in four months. Nearly $500mn of the issuance in the last month was transferred to the market maker, Wintermute.

Stablecoins: Trading Volume

● In August, the trading volume for stablecoin pairs on centralised exchanges fell 14.2% to $848bn (as of the 23rd). However, the volumes are on trend to record higher monthly volumes following a highly volatile price action of digital assets after concerns over the Japanese Yen trade resulted in a major downtrend move in the traditional markets.

● Despite recent MiCA regulations, which have raised concerns about the future of the Tether stablecoin in Europe, USDT continues to dominate the trading activity on centralised exchanges - accounting for 76.9% market share. FDUSD regained its position as the second most traded stablecoin, with its market share now standing at 12.3%, followed by USDC with 10.6%.