Carlos Fernandes The stablecoin sector observed a rise this October, ending a streak of consecutive monthly decreases. The market for tokens pegged to fiat currencies augmented by $608 million in the past month. This increase came even though a majority of the leading stablecoins, six out of the top ten, experienced contractions in their circulating supplies during this time.
October Sees Moderate Growth in Fiat-Pegged Token Market, with Tether and First Digital Leading
In the previous month, Tether (USDT), which stands as the preeminent stablecoin by market capital, saw a supply increment of 1.9%, escalating its market value to an estimated $84.98 billion. As of September 30, 2023, the cryptocurrency’s market capitalization was noted at $83.22 billion.
Significantly, Tether was traded across 456 cryptocurrency exchanges, where it amassed $19.79 billion in global trade volume in the last 24 hours, capturing over 27% of the total $71.77 billion trade volume that transpired in the same timeframe within the entire cryptocurrency market.
The Market Valuation for Tether (USDT) as of November 3, 2023.
Moreover, during October, the market for fiat-pegged tokens expanded from $123.05 billion to $123.66 billion. This growth represents a slight rise of 0.495%, or $608 million, in the stablecoin sector across the month.
Circle’s USD Coin (USDC) underwent a 3.4% contraction over the past 30 days, positioning its market valuation at $24.50 billion. In contrast, Makerdao’s DAI, which ranks third in market cap, trails with a notable gap, being valued at $3.72 billion. DAI also saw a 3% shrinkage in supply during October.
TrueUSD (TUSD) reported a 3.1% decline in its supply for the month, with a current valuation of $3.34 billion. However, the most pronounced reduction was observed in BUSD, which underwent a 13.1% redemption of its supply.
The market value for BUSD has fallen beneath the $2 billion mark, presently at $1.95 billion. Concurrently, the Tron-based USDD token noted a marginal 0.4% decrement, and FRAX saw an even more modest supply dip of 0.2%.
The month’s highlight in the stablecoin market was the first digital USD (FDUSD), which recorded a significant 45.1% climb in its supply. This boost has thrust FDUSD’s total supply to 544.26 million tokens, ranking it as the eighth largest in the stablecoin market.
In the top ten stablecoins, Pax Dollar (USDP) experienced a 6.7% shrinkage in its supply, and Liquity USD (LUSD) a 12.6% decline over the last month. Meanwhile, PayPal’s newly launched dollar-pegged token has quickly risen to become the 15th largest stablecoin.
We invite you to share your perspectives and analyses on the stablecoin market activities in October in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Stablecoin market growth
What was the total growth of the stablecoin market in October?
The stablecoin market experienced a growth of $608 million in October.
Which stablecoin led the market growth in October?
Tether (USDT) led the market growth in October with a 1.9% increase in supply.
How did USDC and DAI perform in the stablecoin market in October?
USDC saw a reduction of 3.4% in its supply, while DAI experienced a 3% decrease during October.
What significant supply change occurred with BUSD in October?
BUSD saw a substantial reduction of 13.1% in its supply in October.
Which new stablecoin made a significant jump in the market rankings?
PayPal’s recently introduced dollar-pegged token swiftly jumped to become the 15th largest stablecoin.
More about Stablecoin market growth
- Stablecoin Market Analysis October 2023
- Tether’s Growth Amidst Stablecoin Fluctuations
- USD Coin and DAI’s Market Performance
- The Decline of BUSD in the Stablecoin Market
- Rising Stablecoins: PayPal’s Entry
5 comments
did anyone else notice that BUSD took a huge hit this month, why’s nobody talking about this??
kinda ironic how PayPal’s new token is climbing the ranks so fast given how traditional finance has been sceptical about crypto for so long
seems like stablecoins aren’t as stable as the name suggest, these fluctuations are pretty significant, aren’t they?
FDUSD’s rise is impressive but let’s see how it holds up over time, new coins often see big swings in the beginning
wow didn’t expect to see Tether making a comeback like this especially after all the controversies, good on them I guess