Despite adding the largest monthly supply since February 2022, we have seen a significant decline in the overall market cap dominance of stablecoins. In December, this percentage fell to just 8.07%, the lowest level since December 2021. This is an interesting development because it says more about how the market is currently developing.
Market capitalization is increasing despite declining dominance
But there is more news: the total market capitalization of stablecoins rose by 3.43% in November to a whopping $128 billion. This is evident from a recent research report by CCData. It appears that the value of stablecoins continues to rise even as their market dominance declines.
The real star of the show is USDT (Tether), the leading stablecoin on the market for years. In December, USDT’s market capitalization rose to a record high of $90.8 billion. This is the first time that a stablecoin has broken the magic barrier of $90 billion. And that’s not all: it is also the fourth month in a row that USDT has seen an increase in market capitalization.
The Rise of the First Digital Dollar (FDUSD)
Another notable player in the world of stablecoins is First Digital USD (FDUSD). The market capitalization of this stablecoin rose by a whopping 92.6% in December, reaching $1.63 billion. With this, FDUSD dethroned BinanceUSD (BUSD) as the fifth largest stablecoin.
First Digital USD is a relatively new stablecoin that was launched in June 2023 by Hong Kong-based First Digital Limited. FDUSD launched on both the Ethereum and BNB networks, but plans to expand to other blockchains in the future.
Binance says goodbye to BUSD
Speaking of BinanceUSD, Binance announced this month that it would end support for its own stablecoin Binance USD. BUSD has suffered 13 straight months of declining market value, falling to $1.47 billion in December. Since February, when the US Securities and Exchange Commission (SEC) issued a Wells Notice, Binance has started phasing out BUSD in favor of stablecoins such as TrueUSD and First Digital USD.
As the year comes to a close, not only are major cryptocurrencies like Bitcoin in the news, but stablecoins are also in the spotlight. While some stablecoins are reaching new heights, we are seeing others exit the market.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
