The stablecoin market continues to grow, reaching a record capitalization of $230 billion. This growth comes amid strong U.S. efforts to enhance integration and supported by key market players.
Growth of the Stablecoin Market
In the past week, the stablecoin market cap increased by $2.3 billion, reaching $230.45 billion. This represents a 56% annual growth. The major players remain Tether USDT and Circle USDC, holding 62.6% and 25.5% respectively.
Role of Institutional Investors
The increase in institutional investor participation has been a key factor in market growth. Many major companies, like PayPal, have started using their own stablecoins for international transactions.
Regulatory Changes in the U.S.
U.S. President Donald Trump has expressed support for stablecoins, promoting them as a tool to strengthen the dollar's global dominance. The Senate committee approved the 'GENIUS Act' bill, which establishes a legal framework for stablecoins.
The increased capitalization and active institutional investor participation highlight the importance of stablecoins in the modern crypto market, with political support potentially contributing to further growth.
