Stablecoin adoption grows with 8.7M wallets
A recent report from CoinGecko reveals that 8.7 million cryptocurrency wallets now hold stablecoins, highlighting the growing adoption of these digital assets.
Stablecoins like Tether (CRPTO:USDT), USD Coin (CRYPTO:USDC), and Dai (CRYPTO:DAI) dominate the market, making up 97.1% of all stablecoin holdings.
These tokens, which are designed to maintain a stable value by being pegged to fiat currencies or other assets, have become essential in bridging the gap between traditional finance and the crypto world.
The report notes that the market capitalization of fiat-backed stablecoins has more than tripled to $161.2 billion as of August 2024, although it remains below the all-time high of $181.7 billion recorded in early 2022.
Dollar-pegged stablecoins like USDT, USDC, and DAI account for over 94% of the total stablecoin market cap.
Tether (USDT) holds a significant 70.3% market share, while USDC's share has declined since the banking crisis of 2023, which caused some stablecoins to lose their peg due to unclear deposits at Silvergate and Signature Bank.
Despite market volatility, USDT, USDC, and DAI have shown greater stability compared to newer or algorithm-based stablecoins like USDD (CRYPTO:USDD) and FRAX (CRYPTO:FRAX), which have struggled to maintain their pegs.
More experimental stablecoins, such as Iron Finance and Basis Cash, have faced severe challenges, leading to their collapse.
Stablecoins pegged to specific commodities have experienced only slight growth, with a market cap of $1.3 billion as of August 2024, representing just 0.8% of the total fiat-backed stablecoin market cap.
At the time of reporting, the Tether (USDT) price was $0.9997, the USD Coin (USDC) price was $0.9992, and the Dai (DAI) price was $0.9992.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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