The stablecoin economy experienced growth in October after several consecutive monthly declines. In the last month, a total of $608 million was added to the fiat-pegged token market. Despite the increase, six stablecoins out of the top ten saw supply reductions during the month.
Fiat-Pegged Token Market Grows Modestly in October, With First Digital and Tether Leading the Charge
Last month, tether (USDT), the largest stablecoin by market capitalization, experienced a 1.9% increase in its supply, bringing its current market valuation to approximately $84.98 billion. At the close of September 30, 2023, the crypto asset’s market cap stood at $83.22 billion.
Notably, across 456 crypto exchanges that list Tether, the stablecoin recorded $19.79 billion in global trade volume over the past 24 hours, accounting for more than 27% of the total $71.77 billion in trades conducted during the same period across the entire ecosystem.
Furthermore, throughout October, the fiat-pegged market grew from $123.05 billion to $123.66 billion, representing a modest uptick of just 0.495%, equivalent to $608 million, in the stablecoin market over the course of the month.
Over the past 30 days, Circle’s usd coin (USDC) witnessed a 3.4% reduction, resulting in its current market valuation of $24.50 billion. In comparison, Makerdao’s DAI, the third-largest in market valuation, lags significantly behind, standing at $3.72 billion. DAI also experienced a 3% reduction during October.
Trueusd (TUSD) saw its supply decrease by 3.1% over the course of the month, currently resting at $3.34 billion. However, the most notable reduction in October was observed in BUSD, with a substantial 13.1% of its supply redeemed.
BUSD’s market valuation has dipped below the $2 billion threshold, now at $1.95 billion. Meanwhile, the Tron-issued USDD token experienced a slight 0.4% reduction, and FRAX’s supply drop was even lighter, at 0.2%.
October’s standout in the stablecoin landscape was first digital usd (FDUSD), which experienced a 45.1% supply rise. This surge has propelled FDUSD’s total supply to 544.26 million FDUSD tokens, establishing it as the eighth-largest contender in the stablecoin arena.
Among the top ten, pax dollar (USDP) witnessed a 6.7% reduction in supply, while liquity usd (LUSD) faced a 12.6% decrease over the past 30 days. Paypal‘s recently introduced dollar-pegged token has made a swift jump to become the 15th largest stablecoin.
What do you think about October’s stablecoin action? Share your thoughts and opinions about this subject in the comments section below.