Stablecoin trading activity experienced a massive boost in November, marking a new high for 2024 and reflecting growing confidence in the digital asset market.
November Stablecoin Performance Highlights
A recent report by CCData, released on November 27, revealed a 77.5% surge in stablecoin trading volume, reaching $1.81 trillion by November 25. This growth positions November as a potential record-breaking month for trading volumes on centralized exchanges.
Other notable trends include:
- Market Capitalization Growth: The total stablecoin market cap climbed by 9.94% in November, reaching $190 billion. This surpasses the previous record of $188 billion set in April 2022, just before the collapse of TerraUSD.
- Market Dominance Shifts: Despite the increase in trading volume, stablecoin market dominance dropped to 5.54% from 7.22% in October. Investors appeared to diversify their portfolios, increasing allocations to Bitcoin and altcoins.
Top Stablecoins See Varied Growth
Leading stablecoins displayed mixed performance in November, with some reaching new milestones:
- Tether (USDt): Maintaining its position as the dominant stablecoin, Tether’s market capitalization rose by 10.5% to $133 billion, accounting for 69.9% of the total market.
- USD Coin (USDC): Circle’s USDC saw a 12.1% increase in market cap, climbing to $38.9 billion—the highest since February 2023.
- Ethena Labs’ USDe: This relatively newer player recorded a staggering 42.2% growth, with its market cap hitting $3.86 billion. This growth is linked to rising interest in Ethena’s ecosystem and its proposal to activate revenue sharing for ENA tokenholders.
Declines Among Some Stablecoins
While many stablecoins thrived, others faced declines:
- FDUSD: Its market capitalization dropped by 14.9%, falling to $1.90 billion.
- Sky Dollar (USDS): Formerly known as Dai, USDS saw an 8.34% decline, reaching $950 million.
What’s Driving the Surge?
The sharp increase in trading volume and overall market growth suggests heightened institutional confidence in stablecoins. Factors like robust ecosystem developments, competitive APYs, and diversification across cryptocurrencies contributed to the rising demand.
