Performance of Stablecoins in 2024

The growth of cryptocurrencies in recent times has also led to the widespread adoption of stablecoins. Since 2020, the stablecoins have grown phenomenally at 3,121.7%. It started with only $5 billion in 2020 and by March 2022, these were worth $181.7 billion. The performance in 2024 till now also has been impressive. Many risk-averse investors choose these to ensure they can shield themselves from rapid volatility. 

Tremendous Growth of Stablecoin’s Market Cap

Since 2020, the total market cap of stablecoin has grown phenomenally. From 2020 to March 2022, the growth had no parallels and was as high as 3,121.7%. The total fiat-pegged market cap has grown by 35.4% from $119.1 billion to $161.2 billion in August 2024. The top three stablecoins include Tether at $114.4 billion, USDC at $33.3 billion, and Dai (DAI) at $5.3 billion. These 3  make up 94% of the total stablecoin market cap. USDT is more successful out of those 3.

Stablecoins Touch 1.3 Billion Mark on 1st August 2024

The market capital of commodity-backed stablecoins touched 1.3 billion as of 1st August 2024. PAX Gold and Tether Gold constitute the majority of the market cap at 78%. Commodity-backed stablecoins have increased by 212 times since 2020 and 18.1% in 2024. However, these are a tiny minority and form only 0.8% of the market capitalization of fiat-backed stablecoins. These may have precious metals for commodities.    

Dominance of Stablecoins Continues To Increase

The stablecoins accounted for 8.2% of the total crypto market capitalization as of 1st August 2024. These were a smaller segment of the industry in early 2020. Around 2% of the global market cap reached 6% during the start of the DeFi runup. The dominance increased between November 2021 and May 2022 due to the exponential growth of Terra’s UST stablecoin. It was 4.8% in November 2021 and has shot up to 15.6% in May 2022. 

Stablecoins Hold 8.7 Million Addresses

The growth of stablecoins is staggering, to say the least. 97.1% of holders have over 8.7 million addresses having these. These include USDC, DAI, and USDT. USDT has the largest number of holders and currently has over 5.8 million wallets. This is why they have an edge over their nearest rival USDC. If the current trends continue then USDT will continue to lead the race.

Also Read- Types and Advantages of Crypto Staking

Conclusion

Stablecoins are performing much above expectations. This is a healthy sign as it indicates that the masses are rapidly adopting these coins. The performance also indicates that the three stablecoins have consolidated their position in the market. This restricts the potential of many newer coins and therefore, most should try out newer innovations. It should have a new Unique Selling Proposition (USP) for better acceptance.