According to data from Alphractal, the stablecoin market capitalization has reached a record high after a period of steady growth since mid-2023.
The analysis platform reported on January 31 2025 that the market cap surged by 73%, rising from $121.18 billion in August 2023 to an all-time high of $211 billion.
Additionally, USDC has been gaining an advantage over other stablecoins.
Since 2023, the stablecoin market has seen substantial growth, largely driven by $USDT (Tether), noted Alphractal. However, $USDC has recently been gaining an edge over other stablecoins.
This shift is attributed to the recent decline in altcoins, with a significant portion of the sell-offs being converted into $USDC.
A noteworthy development is that USDC’s dominance has reached a critical resistance level, similar to where it stood in 2021.
“If this trend continues to rise, it could signal increased risk aversion in the crypto market, potentially indicating a bearish outlook.
Conversely, a decline in USDC’s dominance could open the door for new market highs.” – Alphractal
When looking at the market capitalization of stablecoins other than Tether’s $USDT and Circle’s $USDC, the data shows relatively average growth since 2024. This indicates that $USDT and $USDC continue to be the two most preferred stablecoins in the crypto market.
The growth in stablecoin supply is well epitomized on Solana, which has emerged as the popular platform for memecoins.
Solana’s stablecoin supply soared in January 2025, surpassing $10 billion for the first time and setting a new all-time high.
STABLECOINS | @solana Stablecoin Volumes Hit an All-Time High Surpassing $10 Billion
A key driver behind this surge appears to be the popularity of Trump family memecoins – $TRUMP and $MELANIA tokenshttps://t.co/qMYbqv6U6z @solana_daily @SolanaStatus pic.twitter.com/nPWJDxVzyy
— BitKE (@BitcoinKE) January 28, 2025
A key driver behind this surge appears to be the popularity of Trump family memecoins, including the Official Trump ($TRUMP) and Official Melania Meme ($MELANIA) tokens.
[TECH] MARKET ANALYSIS | $TRUMP and $MELANIA Tokens Launch on Solana Prior to the 2024 Trump Inauguration: Incoming First Lady, Melania Trump, launched a cryptocurrency on the eve of her husband’s inaugurati.. https://t.co/FEh66Cvd1r via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) January 20, 2025
Meanwhile, U.S President, Donald Trump, signed an executive order promoting the growth of dollar-backed stablecoins and imposing a ban on central bank digital currencies (CBDCs).
🇺🇸 STABLECOINS | Trump Signs Executive Order to ‘Promote the Development and Growth of Lawful and Legitimate Dollar-Backed Stablecoins Worldwide’
The order be ” … promoting and protecting the sovereignty of the United States dollar,” as a key goal.https://t.co/v3r56ETVLK
— BitKE (@BitcoinKE) January 24, 2025
The move comes amid the ongoing expansion of BRICS with new entrants such as Nigeria and Uganda drawn in in efforts to establish a new world order and create an alternative to the U.S. dollar in international trade.
🇺🇬 BRICS | Uganda Becomes the First Country in East Africa to Join #BRICS
Combined, the nine BRICS members and the additional nine BRICS partners account for over 41% of the global GDP, measured in terms of purchasing power parity (PPP).https://t.co/7DveNOD73i @BRICSinfo pic.twitter.com/up5vY1vsSR
— BitKE (@BitcoinKE) January 6, 2025
The move by the African countries to join BRICS comes despite stablecoins having emerged as the most popular cryptocurrency in Africa.
[TECH] REPORT | Stablecoins Have Become Crypto’s Killer App Amid Blockchain Scaling Improvements, Says New a16z Report: By enabling fast, cheap, global payments, among other uses, stablecoins have become o.. https://t.co/owxKcyPy4O via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) November 18, 2024
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