Stablecoins have transformed from a specialized concept into a foundational element of the cryptocurrency ecosystem. They provide essential stability in an otherwise highly volatile market, reshaping how individuals and institutions use digital currencies. For traders and investors, recognizing stablecoin trends and demand patterns can unlock strategic opportunities, especially during periods of market fluctuation.
This article presents the latest data, growth metrics, and emerging trends to help you navigate the stablecoin landscape with confidence.
Market Capitalization and Overall Share
As of late 2024, the total market capitalization for stablecoins stands at $172.8 billion. With the broader cryptocurrency market valued at $2.19 trillion, stablecoins account for approximately 7.89% of the entire crypto market.
Earlier in March 2024, the stablecoin market cap was around $147 billion. This represents a significant growth of 17.55% in just a few months, highlighting increasing adoption and trust in these digital assets.
Number of Stablecoin Holders
The number of blockchain addresses holding stablecoins has seen consistent growth. By July 2024, there was a 15% annual increase, bringing the total to 105.55 million addresses.
As of September 2024, that number has risen sharply to 121.67 million. Out of these, 19.70 million addresses were actively transacting with stablecoins during September alone, indicating robust and growing user engagement.
Fiat-Backed Stablecoin Holders
The top ten fiat-backed stablecoins had a combined total of 8.7 million holders as of late 2024. The three largest—Tether (USDT), USDC, and DAI—make up 97.1% of all these holders.
USDT is the clear leader with over 5.8 million holders, which is 2.6 times more than USDC. The remaining seven stablecoins each have fewer than one million holders, with DAI being held in just over 505,000 wallets.
Commodity-Backed Stablecoin Capitalization
Commodity-backed stablecoins, which are pegged to assets like gold, reached a market cap of $1.3 billion by August 2024.
Tether Gold (XAUT) and PAX Gold (PAXG) are the dominant players in this niche, collectively accounting for 78% of the market. Since 2020, the market cap for commodity-backed stablecoins has grown an astonishing 2,012 times, with an 18.1% surge occurring in 2024 alone.
Fiat-Backed Stablecoin Market Cap
During the 2020–2021 bull market, the market capitalization of the top fiat-backed stablecoins exploded from $5.0 billion to $181.7 billion by March 2022—a increase of 3,121.7%.
Although this sector faced a setback following the Terra collapse, it recovered strongly. From 2023 to August 2024, the fiat-backed stablecoin market cap grew by 35.4%, rising from $119.1 billion to $161.2 billion. By September 2024, the total reached $172.19 billion.
Leading Stablecoins by Market Cap
The following table lists the top ten stablecoins based on market capitalization:
| Stablecoin | Market Cap |
|---|---|
| Tether (USDT) | $119.18 billion |
| USDC | $35.86 billion |
| DAI | $5.37 billion |
| FDUSD | $2.94 billion |
| Athena USDe | $2.59 billion |
| USDD | $736.78 million |
| PYUSD | $705.26 million |
| TUUSD | $495.10 million |
| FRAX | $649.12 million |
| Ondo US Dollar Yield | $340.19 million |
Tether (USDT) is the market leader with a 68.98% share. USD Coin (USDC) follows with 20.75%, and DAI holds 3.11% of the total stablecoin market.
Trading Volume Insights
In February 2024, trading volume for stablecoins on centralized exchanges increased by 5.17%, reaching $1.09 trillion—the highest level since December 2021.
Tether (USDT) continues to dominate trading activity. Its 24-hour trading volume currently stands at approximately $51.14 billion, reflecting its deep liquidity and central role in crypto markets.
Blockchain Distribution of Stablecoins
As of early 2023, Ethereum was the leading blockchain for stablecoins with a 59.9% market share, followed by Tron at 26.5%. Both networks experienced growth in their stablecoin ecosystems during that period.
Despite a general decline in stablecoin market cap across most blockchains at the time, Tron was an exception, registering a 2.1% increase between May 2022 and January 2023.
Transaction Volume and Count
Cumulative stablecoin transaction volume from 2019 to 2024 is approximately $219.4 trillion, spanning 8.6 billion individual transactions.
As of September 2024, the annual transaction volume is $20.1 trillion, with 3.5 billion transactions recorded over the preceding 12 months.
Historical Overview and Current Count
BitUSD, introduced in 2014, was the first crypto-backed stablecoin. However, it failed to achieve significant adoption in a market increasingly dominated by U.S. dollar-pegged alternatives.
Later that year, Tether (USDT) was launched as the first dollar-pegged stablecoin and quickly became the market leader due to its stability and liquidity.
Today, there are approximately 160 stablecoins in circulation, reflecting continued innovation and demand for assets pegged to traditional currencies.
Additional Stablecoin Data
Stablecoin savings accounts now offer average annual yields of 6%, making them attractive to traditional investors seeking returns.
In May 2022, stablecoins supplied about 45% of all liquidity on decentralized exchanges (DEXs), underlining their critical role in DeFi ecosystems.
A 2024 metric developed in part by Visa Inc. suggested that over 90% of stablecoin transaction volume may not come from genuine users, raising questions about organic adoption.
For those interested in exploring real-time data and advanced market tools, you can track live stablecoin metrics here.
Frequently Asked Questions
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency or commodity. This reduces volatility and makes them suitable for transactions and savings.
Why is Tether (USDT) the most popular stablecoin?
Tether benefits from first-mover advantage, high liquidity, and widespread acceptance across trading platforms. Its deep integration into crypto exchanges makes it the go-to stablecoin for many traders and institutions.
How are stablecoins used in decentralized finance (DeFi)?
Stablecoins provide essential liquidity in DeFi protocols, enabling lending, borrowing, and trading without the volatility of other cryptocurrencies. They often serve as the primary medium of exchange within these ecosystems.
Are stablecoins safe?
While generally considered less volatile than other cryptocurrencies, stablecoins carry risks related to reserve transparency, regulatory changes, and issuer solidity. It's important to research each stablecoin’s backing and governance.
What are the main types of stablecoins?
The three primary types are fiat-collateralized (e.g., USDT, USDC), crypto-collateralized (e.g., DAI), and algorithmic or commodity-backed stablecoins (e.g., XAUT). Each has different mechanisms for maintaining price stability.
Can stablecoins generate yield?
Yes, many platforms offer yield-bearing accounts or DeFi protocols where users can lend or stake stablecoins to earn interest, often at higher rates than traditional savings accounts.
To dive deeper into current yields and lending opportunities, explore more strategies available in the market.