The stablecoin market reaches $160 billion, achieving results not seen since the collapse of Terra

This week, the value of the fiat-pegged cryptocurrency economy rose to $160 billion, a peak last seen in May 2022, just before Terra’s UST broke away from $1 parity on the 9th May 2022. Over the past month, various stablecoins have seen an increase in supply, with Ethena’s USDE at the forefront, which has seen an increase in supply of around 86.8%.

Stablecoins on the crest of the wave

The stablecoin economy has seen significant growth this year, increasing by $28.63 billion as of December 30, 2023. It went from the $150 billion mark to the $160.03 billion range in just over a year. month, with numerous dollar-pegged coins seeing an increase in supply.

Tether (USDT), the most prominent of these, now holds a market valuation of $109.9 billion, with a circulating supply of 109.84 billion USDT. Over the past month, Tether’s supply has grown by 5.6%.

Circle’s USD Coin (USDC), the second-largest fiat-pegged token by market cap, has seen a 6.4% increase in supply over the past month. Currently, USDC’s market capitalization is slightly above the $34 billion mark.

Together, USDT and USDC account for more than 93% of the total value of the stablecoin market. MakerDAO’s DAI has seen a 9.3% increase in supply over the past month, bringing its market capitalization to $5.2 billion.

First Digital’s FDUSD now boasts a market valuation of $3.74 billion, after rising 43% over the past 30 days. Ethena’s USDE outpaced other major contenders with an 86.8% increase in supply. At the moment, USDE’s market capitalization is approximately $2.37 billion.

Together, these five stablecoins represent 96.98% of the total market, currently holding $155.21 billion of the $160.03 billion stablecoin market value. As the stablecoin market approaches new records, its expansive growth underlines growing confidence in crypto assets pegged to fiat currencies.