Stablecoin market cap surpasses $200B as USDC dominance rises
The stablecoin market capitalization has soared to a record high of $211 billion as of January 31, 2025, marking a 73% increase from $121.18 billion in August 2023. The growth is primarily fueled by USDC, which has gained a considerable market share, rising over 120% from $24.1 billion in November 2023 to $53.4 billion. USDC's trading volume peaked at $20 billion on January 18, 2025. In contrast, USDT's market cap stands at $139.4 billion with a dominance of 63.84%. The USDC surge follows a previous decline in 2023 and suggests increased demand as investors convert crypto holdings into USDC. Despite overall stablecoin market growth since 2023, USDC's circulation has grown significantly, aligning with trends from prior crypto cycles. If this growth continues, it may indicate increased risk aversion in the wider crypto market, while a decline could signal new market highs. This article emphasizes the ongoing dynamics within the stablecoin sector, particularly the ascent of USDC amid a recovering crypto landscape.
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