Capitalization of stablecoins crossed the $ 100 billion mark

Stablecoins have reached a market capitalization of $ 100 billion and, it should be noted, their supply has skyrocketed in 2021.

On January 1, less than $ 30 billion worth of stablecoins were in circulation on the crypto market.According to The Block, this number has tripled since the beginning of the year and has now reached $ 100 billion.

Tether (USDT) still accounts for over 60% of the total stablecoin market capitalization. USDT supply on Tron also grew exponentially and surpassed Ethereum supply.

Another stablecoin, USDC, is also starting to increase its emission. Big partnerships with companies like Visa have accelerated USDC’s growth. Settlement in USDC on the Ethereum blockchain using Visa cards is an important step towards the global adoption of stablecoins.

As far as Tether is concerned, the biggest driving force was the introduction of the Tron blockchain, which made transactions faster and offered lower fees. Since the launch of USDT on Tron, the supply has grown exponentially and surpassed the supply on Ethereum a few weeks ago.

USDC worth $ 20 billion is presented in the form of an ERC-20 token on Ethereum, which is the overwhelming majority of the total supply. Approximately $ 750 million in USDC is traded on Solana.

This rapid growth can be attributed to two factors. First, stablecoins have become more commonly used in DeFi, where users can issue or borrow them.

In addition, stablecoins provide traders with an easy exchange environment to enter and exit their positions without actually withdrawing funds or reverting to fiat currency. Traders do not need to wait between trades, and they can reduce the risk of price fluctuations by maintaining profits in assets pegged to the dollar or any other fiat currency.