Krutika Adani
With the rise in stablecoin usage amid market volatility, Tether has emerged as the largest stablecoin with a market cap of $115 billion.
Tether’s market cap is three times larger than the next largest stablecoin, USDC, which has a market cap of $34.5 billion.
Circle lost the stablecoin race to Tether when the former temporarily lost about $3 billion in the SVB collapse. This prompted users to quickly transfer their holdings to other stablecoins.
A rise in the stablecoin market cap indicates high liquidity, which is extremely beneficial and necessary for bullish markets.
As of 2024, the top stablecoins with their market caps are USDT ($115bn), USDC ($34.5bn), DAI ($5.3bn), FDUSD($1.9bn), and USDD ($742mn).