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Stablecoin supply hits highest level in nearly two years amid USDe growth

Stablecoin supply hits highest level in nearly two years amid USDe growth

The BlockThe Block2024/04/22 18:25
By:The Block

Quick Take Towards the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest level in nearly two years. Ripple said earlier this month that supply will hit $2.8 trillion by 2028.

Stablecoin supply hits highest level in nearly two years amid USDe growth image 0

The total supply for U.S. dollar-pegged stablecoins appears to be trending towards its previous all-time high as the issuing of new tokens creates an increasingly more competitive space. 

Toward the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest token level in nearly two years, according to The Block Data Dashboard . The expanding supply of stablecoins has been buoyed by the rising market cap of Ethena’s “synthetic dollar," or USDe stablecoin, which in recent days has plateaued around $2.4 billion.

When the total stablecoin market hit $165 billion last Thursday, that constituted the highest mark for supply since late June 2022, also according to The Block Data Dashboard . The all-time record high for supply is over $180 billion.

Growing supply and options

The USD-pegged stablecoin market, long dominated by Tether's USDT and Circle's USDC, is growing in terms of total supply and the number of choices. USDT is the clear leader with about a 70% market share, according to DeFiLlama data .

Besides Ethena's new stablecoin launching a little more than two months ago, Silicon Valley-based PayPal launched its own stablecoin with Paxos in August 2023 . Then earlier this month, Ripple announced it has plans to launch a USD-pegged stablecoin later this year. 

At the time of its announcement, Ripple suggested the total stablecoin market would explode in the coming years and hit $2.8 trillion by 2028. 

 


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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