The supply of stablecoins continues to grow, reaching 1% of the US broad money supply, marking a significant trend in crypto dollarization.
Increase in Stablecoin Supply
Various estimates place the stablecoin supply between $223.1B and $227.58B, driven by leading stablecoins like USDT and USDC. Stablecoins mirror the M2 structure, comprising cash, checking, and savings.
Impact on Derivative Markets
Over $44B in stablecoins has been transferred to derivative exchanges, supporting traders in expanding their positions, with a focus on leverage trading.
Tether and Competitors
Tether remains the leading stablecoin with 143.14B tokens in circulation, while USDC is expanding its share thanks to regulatory backing despite having lower trading activity.
Stablecoins are becoming increasingly important in the crypto market, boosting liquidity and impacting financial markets. The supply is expected to reach $400B by year-end.
