Since the U.S. elections on November 5, 2024, stablecoin market capitalization has expanded by an estimated $45 billion, pointing to rising acceptance of dollar-backed tokens and growing interest in regulated alternatives like USD Coin (USDC), PayPal’s PYUSD, and EURC.
Accelerated Growth in Key Stablecoins
Satoshi Club’s tweet notes that USDT recorded most of its market cap gains in late 2024, adding around $21.6 billion since the elections. Analysts associate this trend with active crypto trading pairs that rely on Tether’s liquidity. USDC followed closely, registering $20.8 billion in added market cap, especially from January 2025 onward. Industry observers attribute this consistent rise to the transparency offered by USDC’s reserve model.
Regulated Tokens Capture Investor Confidence
PYUSD and EURC recorded moderate but steady expansions, reflecting a preference for trusted names in digital finance. PayPal’s PYUSD grew by $210.1 million, supported by PayPal’s established brand and user-friendly platform. EURC, a euro-denominated token from Circle, added $22.8 million, seen as evidence of growing regional demand for non-dollar denominated digital assets.
Smaller Coins Face Divergent Outcomes
While many tokens gained traction, FDUSD saw a $329.4 million drop in market capitalization. Traders could be moving funds into more liquid or better-regulated stablecoins. DAI experienced a smaller decline of $0.7 million, which could reflect shifting sentiment toward centralized stablecoins.
These movements indicate that market participants are gravitating toward well-known issuers, emphasizing compliance and liquidity. The overall addition of $45 billion underscores the evolving demand for stable, transparent digital currencies, while smaller players adjust to changing preferences.
