The total market capitalization of stablecoins, excluding algorithmic ones, reached an all-time high of more than $168 billion over the weekend.
Market capitalization had fallen to about $122 billion in October, but has been steadily rising since the start of 2024.
Rachel Lucas, a crypto analyst at BTCMarkets, suggested that the rise in stablecoin market capitalization indicates increased interest from institutional investors who view stablecoins as a safe haven in uncertain market conditions.
She noted that the growing use of stablecoins by institutions underscores the shift toward integrating these digital assets into trading strategies and long-term portfolios.
The market capitalization of USDT, the largest stablecoin, has grown from $91.6 billion in January to $117.889 billion at the time of writing, now accounting for approximately 70% of the segment’s total market cap.
Bonk Inu (BONK), a popular meme coin built on the Solana blockchain, has made a significant leap in the global cryptocurrency space.
Cryptocurrency analyst Bluntz has expressed optimism about a newly launched, cat-themed memecoin within the Binance Smart Chain.
Crypto trader Michaël van de Poppe suggested that the Federal Reserve’s recent decision to cut interest rates by 50 basis points could positively influence the crypto market.
PayPal has announced the launch of its stablecoin, PYUSD, on the Solana blockchain, citing limitations in Ethereum for payment solutions.