The stablecoin market is growing, increasing liquidity and stabilizing the crypto space. This growth can be seen in the two largest stablecoins, Tether USD (USDT) and USD Coin (USDC), which currently account for the majority of transaction volume in the crypto market.

IntoTheBlock analysts showed in their report that USDT and USDC now account for approximately 50% of the total transaction volume among major cryptocurrencies. This growth highlights the crucial role of stablecoins in the crypto ecosystem.

Stablecoins are growing

Stablecoins have reached several important milestones since the beginning of the year. In August, their total market cap reached a new all-time high of almost $170 billion, reflecting the growing adoption of these cryptocurrencies and recognition of their benefits. According to CoinMarketCap, the market cap has surpassed $172 billion at the time of writing.

Cryptocurrency developers are increasingly integrating stablecoins into existing payment systems and expanding the use of digital assets in traditional finance.

Stablecoins are now used for remittances and streamlining cross-border transactions. This growth has attracted more users to the ecosystem, increasing the supply of stablecoins and bringing in new players like Ripple. Additionally, this growth signals an increase in institutional interest and the allocation of more funds to cryptocurrency.

USDT and USDC Continue to Dominate

Amid the continuous development of stablecoins, assets like USDT and USDC continue to dominate. USDT currently accounts for almost 70% of the stablecoin market cap, growing from $92 billion at the beginning of the year to $119 billion at the time of writing.

On the other hand, USDC has also grown significantly since the beginning of the year, recording an increase of more than 41% from $24 billion in early January to $34.75 billion as of October 18.

Jeremy Allaire, CEO of USDC issuer Circle, said four months ago that stablecoins could make up at least 10% of the world’s economic money over the next decade, as these assets have the potential to revolutionize finance, trade, and governance. According to Allaire, the crypto industry is still in its early stages, and stablecoins could be the driving force behind significant development and rapid adoption.

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