Report: Total stablecoin supply hits $180 billion

Bitcoin (BTC) aside, stablecoins are taking center stage. Crypto research organizations Arcane Research and CryptoRank confirmed that the stablecoin supply hit the $180 billion milestone.

Stablecoins continue to outperform the rest of the market, up 6% over the past 30 days. Stablecoins can provide price stability during times of market volatility and are backed by a specific asset or algorithm.

In February, three stablecoins entered the top 10 by market capitalization with the brief entry of Binance USD (BUSD). According to Arcane Research, the three largest stablecoins Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) now collectively account for “9% of the total cryptocurrency market capitalization.”

Additionally, stablecoin supply has grown by $9.5 billion in the past 30 days, despite excessive volatility in the crypto market. Arcane Research stated that USDT is the world's largest stable currency with a market share of 44%. It stagnated throughout last year, and USDC is accelerating its development. "It will grow by 20% in 2022."

“If USDC and USDT continue to grow at a similar pace through 2022, USDC will be the largest stablecoin by market cap by the end of June.”

This morning saw more good news for Tether, the largest stablecoin by market capitalization. Tether FUD is a concern for the crypto industry in 2021, but USDT's trajectory now appears to be on the upswing.

In its latest proof of reserves, the company has reduced its commercial paper exposure by 21%. Additionally, the report states that Tether’s “consolidated assets exceed consolidated liabilities.”

While most cryptocurrency advocates may wonder about the importance of stablecoins, their use cases are growing, especially in developing countries. Also, for investors, stablecoin dominance is an interesting indicator, as explained below:

With the total stablecoin supply hitting a new all-time high, traders are hoping that $39,600 will not pose a significant resistance.