In recent weeks, the crypto market has been on a bearish run that has seen some of the leading digital assets shed enormous amounts of their values. This is on the heels of an historic bull run in which Bitcoin was able to cross the $60k mark while Ethereum was also able to touch $4,000. However, despite the downturn in the form of these assets, one class of asset has enjoyed a wonderful run this year.
Stablecoins have seen their use and importance increase exponentially in the crypto market. Little over a month ago, the entire market capitalization of the fiat-backed coins crossed the $100 billion mark. Not only that, these assets have also seen their market valuation rising —since the end of May, the growth of the sector has gone up by 13 percent.
Interestingly, Tether (USDT) remains the undisputed leader in this class. The asset has the highest market valuation and also the largest amount of transactions daily. As of press time, its market cap stands at over $60 billion which translates to roughly 5 percent of the entire stablecoins in existence.
Statistics from two leading analytic firms, Messari and Coingecko, shows that Tether has more daily trading volume than Bitcoin and Ethereum combined. Notably, the bulk of the trades involving the two leading assets involved stablecoins —over 60 percent of the trades involved swapping between them and Tether alone.
Away from USDT, other stablecoins like USDC have seen their market cap rise too. USDC market cap stood at $22 billion in June, that figure had risen to around $26 billion by mid-July; BUSD also saw its value rise to $11.25 billion from $8.72 billion.