Sentora has reported a record high for stablecoin transaction volumes in May, reaching $1.4 trillion.
Steady Growth in Transaction Volumes
Since 2020, on-chain transaction volumes for stablecoins have seen significant increases. Back in January 2020, the total volume barely exceeded $50 billion, while in May 2023, it hit $1.38 trillion, marking a new all-time high.
Leaders in the Stablecoin Market
Tether (USDT) leads the stablecoin market with a market capitalization of around $155-157 billion. USD Coin (USDC) follows with approximately $61 billion in market cap. Other entrants like Pax Dollar (USDP) and Frax (FRAX) hold a smaller market share.
Factors Behind the Stablecoin Boom
Key factors contributing to this growth include:
- The rise of DeFi and earning potential with stablecoins.
- Fast and cost-effective cross-border payments.
- Growing regulatory confidence.
- Trading and arbitrage on the DEX and CEX platforms.
The stablecoin market is currently showing a strong upward trend, and it is expected to continue due to new regulatory frameworks and increasing use across various sectors.
