Fiat-Backed Stablecoins Surge In 2024: A Market Overview
The performance of fiat-backed stablecoins in 2024 has been notable, with the market cap of the top 10 stablecoins reaching $161.2 billion.
This marks a 35.4% growth from the $119.1 billion seen in 2023, though it still falls short of the $181.7 billion peak recorded in 2021.
Tether ($USDT) continues to dominate the stablecoin market, boasting a massive market cap of $114.4 billion, which accounts for 70.3% of the total stablecoin market share. Its significant lead shows Tether’s continued strength as the go-to option for stablecoin users.
Following $USDT is USD Coin ($USDC), with a market cap of $33.3 billion. However, $USDC has experienced a gradual decline in its market share, a trend that began during the U.S. banking crisis in March 2023. Despite this, it remains the second-largest stablecoin by market capitalization.
How are fiat-backed stablecoins performing in 2024? 🤔
The market cap of the top 10 fiat-backed stablecoins rose to $161.2B in 2024, a 35.4% increase from $119.1B in 2023. However, it remains below the 2021 peak of $181.7B.
Read the full report: https://t.co/V1uxLTAmKd pic.twitter.com/cF1HIukk8m
— CoinGecko (@coingecko) September 12, 2024
The third largest player in the space is $DAI, a decentralized stablecoin with a market cap of $5.3 billion. Together, these three stablecoins—$USDT, $USDC, and $DAI—account for 94% of the entire stablecoin market, reflecting their overwhelming dominance in the sector.
Interestingly, stablecoins pegged to non-USD currencies, such as the Euro, Japanese Yen, and Singapore Dollar, make up only a small fraction of the total market, representing just 0.2% of the market cap.
Overall, 2024 has been a year of growth for fiat-backed stablecoins, with the sector expanding significantly, although still below its previous highs. The combined strength of $USDT, $USDC, and $DAI continues to shape the landscape, while stablecoins tied to other currencies remain a niche segment of the market.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
