Stablecoin market cap hits new all-time high, beating early 2022 record

The total stablecoin market capitalization, excluding algorithmic stablecoins, hit its all-time high over the weekend, DefiLlama data shows. 

Stablecoin’s market cap expanded by 0.8% over the past week to over $168.1 billion, surpassing the previous peak in March 2022 of around $167 billion.

The market cap hit a low of around $122 billion in October as the market cap started to dwindle a few months after the March 2022 high. Since the beginning of 2024, the stablecoin market cap has continued to grow, according to DefiLlama data.

A rising stablecoin market cap may indicate that crypto is attracting more money from institutional investors, Rachael Lucas, a crypto analyst of BTCMarkets, told The Block.

“Traditionally, demand for stability in uncertain market conditions has driven investors towards stablecoins as a safe haven,” Lucas said. “Alternatively, the increase in the stablecoin market cap could reflect growing confidence in the crypto market, especially from institutional investors.” 

Lucas added that stablecoins are being increasingly utilized by institutional investors as a bridge between TradFi and crypto. “This trend underscores a broader shift towards integrating stable digital assets into both trading strategies and long-term portfolios.”

Meanwhile, USDT -0.20% , the largest stablecoin, has seen its market cap grow about 28% this year, from $91.68 billion at the beginning of this year to $117.84 billion today. USDT now accounts for about 70% of the total market capitalization, according to DefiLlama data.

Circle’s USDC, despite some fluctuations in market cap, has also experienced an upward trend in 2024, growing from $23.8 billion in early January to $34.4 billion today.