USD Stablecoins Hit Spot Trading Volume Record Highs, With USDT Still Dominating Market

Published at: May 22, 2019

Cryptocurrency research firm Diar indicates that the market capitalization for USD stablecoins has hit all-time highs and exceeded $4 billion, according to its latest weekly report published on May 21.

Stablecoins tied to the greenback have broken through to a market cap of almost $4.3 billion, according to Diar’s data. The report also reveals a surge in USD stablecoin trading volumes, with Circle and Coinbase-backed USD Coin (USDC) posting a 130% uptick in volume between April and May, so far this month hitting $3.6 billion (as compared with $1.6 billion in April).

As Diar notes, USDC’s trading volume increase since January 2019 is 435%.

TrustToken's TrueUSD (TUSD) — while reporting slower month-on-month volume increase — outstripped USDC in terms of absolute trading volumes, reporting $3.8 billion in May so far as compared with $2.88 billion in April.

Notwithstanding these strong performances, Diar notes that stalwart if controversial stablecoin tether (USDT) still commands the lion’s share of the market, with trading volumes this year to date exceeding $1.3 trillion — already $200 million higher than the whole of 2018.

USDT trading volumes 2015— 2019 (Jan-May only). Source: Diar.

Diar nonetheless claims that outside of centralized exchanges, the broad use case of stablecoins has been slower to gain traction. While USDC reportedly saw a 540% increase in active addresses on-chain versus the start of 2019 — with TUSD ostensibly posting similar growth — the absolute peak addresses for the two coins has been capped to 5,500 per day, the report notes.

As Diar notes, Coinbase has made a recent bid to widen its stablecoin trading base by expanding USDC trading to customers in 85 countries — at the same time adding over 50 more jurisdictions to its broader crypto-crypto trading coverage.

Even as it continues to command stablecoin market dominance, tether has equally consistently continued to spark controversy. Having come under renewed criticism for being allegedly backed only 74% by USD reserves, the stablecoin issuer is also currently fielding a major injunction from the New York Attorney General over alleged misconduct together with affiliated crypto exchange Bitfinex.

Tags
Adoption
Altcoin
Cryptocurrencies
Stablecoin
Coinbase
Tether
Dollar
Circle
Related Posts
Stablecoin market to have hit $1T by 2025, Unstoppable Domains CEO predicts
The private stablecoin market will surge parabolically in the next four years despite the existing regulatory uncertainty, Unstoppable Domains CEO Matthew Gould believes. In a Thursday interview with Business Insider, Gould predicted that the stablecoin market would hit $1 trillion by 2025 to see roughly a tenfold increase from around $115 billion at the time of writing. “We may even do it quicker than that,” the CEO noted, adding that the global stablecoin adoption will be partly driven by the growing acceptance of decentralized finance applications. “The more people with stablecoins in the pocket, the more people who can participate …
Adoption / Aug. 5, 2021
Coinbase Card Rolls out DAI as First Supported Stablecoin: Official
Coinbase Card, a crypto-powered Visa debit card from major crypto exchange Coinbase, now supports Dai (DAI), a stablecoin pegged to the United States dollar. According to a blog post on Dec. 6, Dai is the first stablecoin that is available on Coinbase Card, alongside major cryptocurrencies such as Bitcoin (BTC) and Litecoin (LTC). As 1 DAI is equivalent to $1, the addition of the stablecoin to the Coinbase Card aims to allow customers to spend crypto with less volatility, the announcement says. Cointelegraph has requested comment from Coinbase’s team on why the company has decided to choose DAI rather than …
Adoption / Dec. 6, 2019
Frax co-founder Sam Kazemian believes stablecoin regulations are currently too harsh
Stablecoins, or crypto assets which peg their value to less volatile fiat money, are useful tools for a variety of reasons. They can be used to cash out crypto investments, send or receive stable money abroad, and to pay for everyday consumer transactions without fear of fluctuation. A recent estimate from the Bank for International Settlements, or BIS, put the total stablecoin supply at roughly $150 billion. But central banks, the issuers of traditional fiat money around the globe, do not seem to be big fans of stablecoins. A sharp increase in supply coupled with a lack of relevant regulations …
Adoption / Dec. 8, 2021
What is USD Coin (USDC), fiat-backed stablecoin explained
Is USD Coin safe? Despite the fact that the USD Coin is subject to regulatory oversight, investors must weigh the pros and cons of investing in stablecoins before committing any funds. Comparing USDC with USDT, USDC is subject to regulations as it is audited from time to time, and Circle is fully transparent about its operations. However, investing in the cryptocurrency market, even in stablecoins, has its own cons. For instance, the price of the USD Coin will never appreciate as it is pegged to the U.S. dollar. This disadvantage is offset by the provision that USDC can be lent …
Altcoin / Dec. 30, 2022
Hong Kong Monetary Authority aims to oversee stablecoin reserves
Hong Kong’s central bank, the Hong Kong Monetary Authority (HKMA), wants to supervise stablecoin issuance and reserves management. HKMA published a discussion paper on Jan. 12 regarding cryptocurrencies and stablecoins, in which it provided its views on how the industry should be regulated in Hong Kong. In the 34-page long consultation document, the HKMA paid special attention to “payment-related stablecoins,” pointing out that the market capitalization of all stablecoins hit $150 billion in December, accounting for 5% of the entire crypto market. The regulator added that all existing stablecoins are “mostly asset-linked and predominantly pegged” to the United States dollar, …
Adoption / Jan. 12, 2022