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The Rise of the Stablecoin Market in February 2024
The crypto market is experiencing significant growth in terms of stablecoin market capitalization and trading volume in February 2024. Here are some key highlights from a recent market report:
Stablecoin Market Capitalization
- In February, the stablecoin market capitalization soared by 1.95% to reach $138 billion, marking a fifth consecutive monthly growth since September 2023.
- Indices show a stronger performance towards the end of the month, indicating a continuous upward trend in the market capitalization of stablecoins.
Stablecoin Trading Volume
Trading volumes for stablecoins reached 1.04 trillion in January, marking the highest volume point on centralized exchanges (CEX) since December 2021. The report also indicated a rise in stablecoin trading volume in the first two months of 2024.
Stablecoin Dominance Plunge
Despite the increasing figures and activities in the stablecoin market, the overall market dominance of stablecoins declined from 8.15% to 7.09% in February 2024. This marks the sixth straight month of reduced overall market strength compared to other cryptocurrencies.
Leading Stablecoins
Tether (USDT) maintains its lead in the stablecoin market, with a market cap of $97.3 billion, marking a 1.23% rise in the last 30 days. This growth places USDT dominance at 70.6%, followed by USDC and DAI.
CBDC Development
As the stablecoin market capitalization rose, interest in Central Bank Digital Currencies (CBDC) also grew. Several jurisdictions, including countries with existing pilot projects, are exploring new use cases for CBDCs. For example, the Bank of Japan held the first digital yen meeting, and the Sri Lankan Central Bank announced plans to explore a CBDC to improve financial inclusion.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
