Key Updates

Key Findings

Stablecoins Rises For the Tenth Consecutive Month

In July, the total market capitalisation of stablecoins rose 2.11% to $164bn, recording the tenth consecutive increase in the end-of-month market cap and the highest since April 2022.

This is the highest monthly rise in the stablecoins market capitalisation since April, suggesting inflows of new capital into the markets as reflected by the positive price action of digital assets in July

USDC Market Cap and Trading Volume Surges

In July, the market capitalisation of USD Coin (USDC) rose 5.36% to $33.6bn, recording the first increase in end-of-month market capitalisation for the stablecoin since April.

The trading volumes on USDC pairs on centralised exchanges rose 48.1% to $135bn, benefitting from the stablecoin’s MiCA compliance after the European regulations took effect late last month.

European Stablecoins Struggle Amidst MiCA Regulations

In July, the market capitalisation of European stablecoins fell by 1.43% to $235 million, marking the seventh consecutive decline in the sector's end-of-month market capitalisation.

Monerium’s EUR eMoney and Membrane Finance’s EUROe—two MiCA-compliant stablecoins—saw their market capitalisations fall by 16.5% and 9.92% to $14.3mn and $1.71mn.

Trading Volume on Trend For First Increase Since March

Stablecoin trading volume fell 8.35% to $795bn in July as of the 25th. However, the volumes are on trend to record higher monthly volumes, following the launch of spot Ethereum ETFs and the bullish sentiment on the industry expressed at the Bitcoin Conference last week.

USDT continues to dominate trading activity on centralised exchanges, accounting for 73.5% market share among the top 10 stablecoins.

Stablecoins Market Cap & Volumes

● In July, the total market capitalisation of stablecoins rose 2.11% to $164bn, recording the tenth consecutive monthly increase in market capitalisation. This is the highest market capitalisation for stablecoins since April 2022. This is the highest monthly rise in the stablecoins market capitalisation since April, suggesting the inflow of new capital into the markets as reflected by the positive price action of digital assets in July.

● Stablecoin market dominance is currently at 6.93%, rising from 6.83% in June. The rise recorded the second consecutive increase in the stablecoins dominance and the highest since April.

● Stablecoin trading volume fell 8.35% to $795bn in June as of the 25th. However, the trading activity is on trend to record the first increase in monthly trading volumes since March following the launch of spot Ethereum ETFs, and bullish sentiment following the Bitcoin Conference last week.

Stablecoins Overview: Top 10 Stablecoins

● In July, the market cap of TetherUSD (USDT) rose by 1.61% to $114bn, continuing to record a new all-time high for the stablecoin with its eleventh consecutive monthly increase in market capitalisation. The market dominance of USDT is currently at 69.6%.

● The market capitalisation of USD Coin (USDC) rose 5.36% to $33.6bn, recording the highest market capitalisation since February 2023. Meanwhile, BlackRock’s BUIDL saw its market capitalisation increase by 9.17% to $589mn, recording a new all-time high for the tokenized money market fund. PayPal USD continued to be the largest gainer among the top ten stablecoins, rising 17.9% to $589mn, a new all-time high for the stablecoin.

● First Digital USD (FDUSD) and Ethena USDe saw their market capitalisation fall the most among the top 10 stablecoins, declining 8.77% and 5.73% to $1.64bn and $3.40bn respectively.

Stablecoins: Trading Volume

Stablecoins Trading Volumes on Centralised Exchanges On Trend to Record First Increase in Four Months

● In July, the trading volume for stablecoin pairs on centralised exchanges fell by 8.35% to $795bn (as of the 25th), marking the fourth consecutive monthly decline. However, volumes are trending towards higher monthly figures due to increased volatility following the launch of spot Ethereum ETFs and the bullish sentiment expressed at the Bitcoin Conference last week.

● Despite recent MiCA regulations raising concerns about the future of the Tether stablecoin in Europe, USDT continues to dominate trading activity on centralised exchanges, accounting for 73.5% of the market share among the top 10 stablecoins by market capitalisation. FDUSD saw its market share by trading volume increase to 15.8%, while trading activity for USDC pairs on centralised exchanges also rose to 10.2%.