In Q3, the stablecoin’s market has witnessed an exponential increase as the combined market capitalization reach above $20 billion.
In 2020, decentralized finance (DeFi) has seen a boom in performance, which ultimately pushed the stablecoin market in upward momentum. High demand investors’ interest has pushed market capitalization to new highs.
In its last market analysis, crypto analytics firm Messari finds out that stablecoin market has seen immense growth as “total stablecoin monetary base grew by $8.2B,” which is greater than the “past four quarters combined.”
Out of a total $20 billion market capitalization, more than $15 billion is based on Ethereum’s blockchain. Two-thirds of total these stablecoins are functional over centralized exchanges such as Binance.
Dai Stablecoin has Seen 618% Growth
Based on the analyzed data, stablecoin known as Dai is the most evolving digital currency in Q3. Dai has been surged by 618% due to high demand in NFT markets and yield farming marketplaces. The third-largest digital asset Tether has also shown immense growth over the quarter.
Stablecoin of the DeFi protocol Synthetix called SUSD has been increased by 263% over the given timeframe. Similarly, BUSD, stablecoin of Binance is up 187% in Q3. USDC of Circle and Coinbase has not been left behind, but the growth of 157% is noticed over the quarter.
Increase in Tether Supply
The demand for Tether is still high as the company continues to mint more and more coins. According to Whale Alert, the company minted $300 million in USDT in the last 24-hours. At press time, the total market cap of Tether is standing close to $16 billion.
According to Tether CTO Paolo Ardoino, the issuance of USDT is “replenish on Tron Network.” The data published by Tether Transparency shows the total supply of Tether has reached $16.2 billion. Out of total circulating supply, 63.5% supply is present over Ethereum blockchain, while TRON and Omni are hosting 29.6% and 8.2% of supply, respectively.
According to the latest reports, the DeFi craze has pushed the demand for stablecoins high.