CandleFocus

Stablecoin supply reaches $162 billion amid rising institutional demand and liquidity hunt

Author: Content Editor
The stablecoin market continues to grow, reaching a total supply of $162.1 billion in August, despite the overall downturn in the crypto market. Tether (USDT) dominates the stablecoin market with a market cap of $119 billion, followed by USD Coin (USDC) at $33.5 billion. The increase in stablecoin supply is attributed to institutional adoption, the search for stability and liquidity, and growing confidence. The disparity between stablecoins reflects a shift in investor behavior, with many swapping their holdings for more stable and liquid alternatives. A CEO of Fideum mentions the EU regulatory framework for stablecoins, which could impact their long-term stability. The rising supply of stablecoins can also be seen as a gauge for institutional interest, as institutions often enter the crypto market using stablecoins to avoid volatility risks. Major players like JPMorgan, VanEck, and PayPal are developing their own stablecoins to bring clients into the crypto ecosystem. Stablecoins are considered the most successful use case in crypto so far, but there is still room for growth and development, especially in addressing capital allocation challenges.

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