In December, the dominance of the entire stablecoin market cap experienced a decline, reaching 8.07%, marking the lowest market share since December 2021. This drop occurred despite the addition of the largest monthly supply last month since February 2022.
According to a research report from CCData, the total market capitalization of stablecoins increased by 3.43% to reach $128 billion in November. The upward trend seems poised to persist, as the asset class has already surpassed $129 billion as of December 18. This data suggests a dynamic and evolving landscape for stablecoins in the cryptocurrency market.
USDT Market Cap Breaches $90 Billion for the First Time
In December, the market capitalization of USDT (Tether) reached a historic high, surging to $90.8 billion for the first time. This milestone represents a significant achievement, marking the initial instance of any stablecoin surpassing the $90 billion mark in market capitalization.
This accomplishment also signifies the fourth consecutive month of an upswing in the market capitalization of USDT, underscoring its sustained growth in recent months.
The market dominance of USDT among the top 10 stablecoins currently stands at 70.2%, reaching the highest level since January 2021. This data underscores the prominent position of USDT within the stablecoin market.
In November, the trading volume for USDT pairs on centralized exchanges reached a notable high, hitting $662 billion. This level of trading activity stands as the highest recorded since March 2023, according to researchers at CCData.
For the month of December, the standout stablecoin has been First Digital USD (FDUSD). The market capitalization of FDUSD saw an impressive 92.6% increase, reaching $1.63 billion as of December 18th. This surge marks a new all-time high for the stablecoin.
Remarkably, FDUSD has surpassed BinanceUSD (BUSD) to become the fifth-largest stablecoin, trailing behind USDT, USDC, Dai, and TrueUSD. This shift in rankings highlights the dynamic nature of the stablecoin market and the changing positions of different assets within this sector.
Binance Ends Support for BUSD
This month, Binance made an announcement regarding the discontinuation of support for its stablecoin, Binance USD (BUSD). The market capitalization of BUSD had experienced 13 consecutive months of decline, reaching $1.47 billion in December.
At one point, BUSD accounted for nearly 36.4% of the trading volumes on Binance. However, it has been gradually phased out and replaced by TrueUSD and First Digital USD. This shift in stablecoin usage comes after Binance received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) in February. The decision to end support for BUSD reflects the evolving regulatory landscape and the strategic adjustments made by cryptocurrency platforms in response to regulatory challenges.
