Relevant Trends

USDT: Market Cap and Trading Volumes

Tether Continues to Expand With Upcoming Launch of Sterling Denominated and Dirham Pegged Tokens

● The influence of USDT in the stablecoins market continued to rise with the market cap of stablecoin reaching a new all-time high of $117bn in August. The stablecoin now accounts for 69.6% of the total stablecoins market capitalisation with its trading dominance on centralised exchanges reaching 76.9%.

● In August, the stablecoin issuer unveiled its plans to launch stablecoin pegged to Sterling and Dirham (GBPT) and (AEDT). This will be the seventh and eighth stablecoin from the issuer, following USDT, EURT, CNHT, MXNT, XAUT, and aUSDT, which have a current circulating supply of $117bn, $30.1mn, $177k, $19.6mn, $620mn and $19.1mn respectively.

PYUSD: Market Cap and Trading Volumes

PayPalUSD Reaches New All-time High Amidst Attractive Incentives

● In August, the market capitalisation of PayPal USD (PYUSD) jumped 56.6% to $960mn, recording the fifth consecutive increase in end-of-month market capitalisation for the stablecoin. This recorded a new all-time high for the stablecoin, making it the sixth largest stablecoin by market capitalisation.

● The trading volumes on PYUSD pairs on centralised exchanges rose 80.6% to $320mn, following high-profile listing on exchanges including Bybit. However, the recent spike in demand is likely due to attractive incentives offered on decentralised lending protocols for PYUSD, with dApps including Drift Protocol offering up to 18% APR in yield. On-chain data shows that over 50% of PYUSD is serving as collateral on lending protocols and quote pairs on DEXs.

EURC: Market Cap and Trading Volumes

Demand for Euro Coin Surges Following MiCA Regulations

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

● Newer MiCA-compliant stablecoins have also entered the market, with Banking Circle launching Eurite Euro Token (EURI) following authorization as a credit institution under the supervision of the Luxembourg Commission de Surveillance du Secteur Financier (“CSSF”). The stablecoin is set to be listed on Binance with its EUR and USDT pair available for zero-fee trading promotion on the exchange.

GHO: Market Capitalisation

Market Capitalisation of GHO Stablecoin Reaches New All-time High

● The market capitalisation of GHO stablecoin rose for the sixth consecutive month, rising 15.4% to $118mn. This recorded a new all-time high for the stablecoin after shaking off its concerns over trading under parity during the earlier months since its launch. AAVE has introduced measures to bring additional utility to the stablecoin which is currently being primarily used on stableswaps such as Curve and Balancer.

● In August, AAVE Labs proposed to improved its stability module by integrating with BlackRock’s tokenized fund BUIDL which will see excess USD Coin converted into BUIDL tokens to ensure peg stability. Meanwhile, speculation over a proposed buyback and incentives to AAVE stakers and GHO stablecoin minters has also boosted the demand for AAVE and GHO tokens in recent weeks.