In 2024, stablecoin has surged to new heights, with nearly $30 billion minted so far this year. On Tuesday, Tether and Circle, the two largest issuers, created $1.25 billion worth of stablecoins, driven by expectations of SEC approval for spot Ethereum exchange-traded funds (ETFs). Tether issued $1 billion in USDT on Ethereum, while Circle minted $250 million in USDC on Solana.
Stablecoin supply increased typically signaling bullish sentiment as traders use stablecoins to purchase other cryptocurrencies. This surge comes amid substantial investments in spot Bitcoin ETFs, attracting nearly $16 billion since their March launch. This rise occurs as spot Bitcoin ETFs garner nearly a billion since their introduction in March.
Tether and Circle begin minting after a KYC process, accepting fiat deposits to back each stablecoin with at least $1 in reserves. Tether’s USDT dominates the market with a $111.3 billion market cap, while Circle’s USDC follows with $32.7 billion. The statistics reveal that stablecoin’s market capitalization has increased from $130.8 billion to $160.6 billion this year, totaling to $2.7 trillion.
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