Stablecoin supply hits highest level in nearly two years amid USDe growth
Quick Take Towards the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest level in nearly two years. Ripple said earlier this month that supply will hit $2.8 trillion by 2028.
The total supply for U.S. dollar-pegged stablecoins appears to be trending towards its previous all-time high as the issuing of new tokens creates an increasingly more competitive space.
Toward the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest token level in nearly two years, according to The Block Data Dashboard . The expanding supply of stablecoins has been buoyed by the rising market cap of Ethena’s “synthetic dollar," or USDe stablecoin, which in recent days has plateaued around $2.4 billion.
When the total stablecoin market hit $165 billion last Thursday, that constituted the highest mark for supply since late June 2022, also according to The Block Data Dashboard . The all-time record high for supply is over $180 billion.
Growing supply and options
The USD-pegged stablecoin market, long dominated by Tether's USDT and Circle's USDC, is growing in terms of total supply and the number of choices. USDT is the clear leader with about a 70% market share, according to DeFiLlama data .
Besides Ethena's new stablecoin launching a little more than two months ago, Silicon Valley-based PayPal launched its own stablecoin with Paxos in August 2023 . Then earlier this month, Ripple announced it has plans to launch a USD-pegged stablecoin later this year.
At the time of its announcement, Ripple suggested the total stablecoin market would explode in the coming years and hit $2.8 trillion by 2028.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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