Since the beginning of this year, the market value of stablecoins has steadily increased, with the transfer volume growing tenfold over the past four years

Source: Coin World Original

Author: Web3 Scent Observation

Stablecoins are the main bridge between the traditional financial system and the digital asset space, and their trends are often used to gauge the health of the cryptocurrency market and investor confidence.

Over the past four years, the monthly transfer volume of stablecoins has increased tenfold, from $100 billion to $1 trillion. The importance of stablecoin assets has significantly risen, becoming a key component of the cryptocurrency market.

Since the beginning of this year, the market capitalization of stablecoins has steadily increased

Generally speaking, the rise in stablecoin market capitalization is usually associated with increased investor confidence, indicating that more capital will flow into the cryptocurrency market.

According to Coin World data, as of June 21, the cumulative market capitalization of all stablecoins has exceeded $162 billion, an increase of over 24% from $130 billion in January this year. Among them, Tether (USDT) stands out with a market capitalization of $112.31 billion, accounting for 69.3% of the total stablecoin economy. In addition to its significant market cap, USDT has consistently maintained a leading position in trading volume within the crypto market.

Source: Coin World Data

Stablecoins are cryptocurrencies pegged to stable assets such as fiat currencies, gold, or other cryptocurrencies. Since their launch, stablecoins have had a significant impact on the cryptocurrency market.

The price stability offered by stablecoins has attracted a large number of individuals and institutions, helping to reduce the volatility of the entire cryptocurrency market, making it easier for a broader audience to accept. Additionally, stablecoins are the most popular trading pairs in cryptocurrency exchanges, allowing traders to move funds into stablecoins during market volatility and then convert back to other cryptocurrencies when the market stabilizes.

Stablecoin transfer volume has increased tenfold in 4 years

On Wednesday, on-chain data platform Token Terminal announced on social media that the 30-day stablecoin transfer volume has significantly increased over the past four years. Token Terminal stated, "The monthly stablecoin transfer volume has grown approximately tenfold over the past four years, from $100 billion to over $1 trillion."

Stablecoins occupy an important position in global exchange trading volume. According to the latest data, stablecoins account for 60.13% of the total trading volume, indicating that they play an increasingly critical role in the market.

USDT dominates the stablecoin market with a market capitalization of $112.31 billion and a daily trading volume of $34.84 billion, but other stablecoins like USDC and DAI are also rapidly growing, providing investors with more options.

Core member of BOSS Wallet 0x Planck stated that the continuous growth in stablecoin usage is a positive signal for the increasing adoption of cryptocurrencies and the maturing of the cryptocurrency industry. This not only indicates a rising demand for stablecoins in the market but also reflects an increase in investor trust and reliance on the cryptocurrency market.

The rapid growth of stablecoins highlights their increasing importance in the cryptocurrency market. Although USDT leads, other stablecoins are closely following. As stablecoins continue to dominate trading volume, their impact on the future of the entire crypto economy will become increasingly evident.