cryptojournalist
Ethereum’s layer-2 networks have hit a major milestone, with $13.5 billion in stablecoins locked onto these platforms. This reflects the growing demand for cryptocurrencies and the increasing importance of stablecoins in the crypto world. The total stablecoin market cap has now surpassed $205 billion, with Ethereum layer-2s holding a significant portion.
Major Stablecoins in the Market
Tether (USDT), USD Coin (USDC), and Ethena’s USDe are the leading stablecoins in the market. These stablecoins are key players in the crypto space, with Ethereum’s layer-2 networks now holding a large chunk of the supply.
The Rise of Stablecoins
Matthias Seidl, co-founder of analytics firm growthepie.xyz, pointed out that stablecoin supply on Ethereum layer-2 networks has been growing rapidly. By mid-December, the total value of stablecoins on all layer-2 networks was nearing $12 billion. Arbitrum One, with $6.75 billion, and Base, with $3.56 billion, are leading the charge.
Stablecoin Market Hits New Highs
The stablecoin market cap reached a record $202 billion by December 2023, excluding algorithmic stablecoins. This marks a strong recovery from the previous high of $167 billion in March 2022, which had dropped to $135 billion by year’s end.
Tether and USD Coin Lead the Pack
Tether (USDT) continues to lead the stablecoin market, reaching over $140 billion in market cap by December 2024. USD Coin (USDC) also saw strong growth, with a market cap of $42 billion, though it’s still below its peak of $55.8 billion in June 2022.
Looking Ahead: Stablecoins Set for More Growth
Stablecoins are expected to keep growing in 2025. Experts believe that upcoming regulations, like the EU’s MiCA and potential US stablecoin legislation, could drive even more growth. As stablecoins continue to impact global payments and remittances, they’re likely to play an even bigger role in the financial world.
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