Coin Edition -
- The stablecoin market has seen a $4.21 inflow within the last ten days.
- Tether USDT accounted for a $2.4 billion inflow, mainly via the Tron blockchain.
- Ethena Labs’ USDe climbed to a $2 billion valuation from below $600 million at the beginning of March.
The influx of capital into stablecoins has surged, with a staggering $4.21 billion injected into dollar-pegged cryptocurrencies within the last ten days. According to data from DefiLlama, the stablecoin market was about $150.42 billion as of Apri 1. The figure has grown by $4.21 billion to hit $154.63 at press time.
Of the $4.2 billion influx, Tether, the most prominent stablecoin issuer, accounted for $2.4 billion in USDT. Notably, most of the USDT tokens were issued via the Tron blockchain. At press time, Tether commands $107.28 billion of the stablecoin market.
However, Circle’s USDC, while maintaining its standing as the second-largest stablecoin, has seen comparatively modest growth. While stalwarts like USDT and USDC remain dominant, new contenders are gaining traction.
For instance, First Digital USD (FDUSD) grew from $2.17 billion at the end of March to about $3.14 billion as of April 6. This growth marked a 44.7% gain in under seven days. Notably, FDUSD’s uptick is fueled partly by Binance’s launchpools, which incentivize users with allocations of newly launched tokens.
Meanwhile, Ethena Labs’ USDe has emerged as the most prominent contender in the past few days. It cracked a $2 billion valuation in April from below $600 million at the start of March. At press time, USDe boasted a total circulation of $2.315 billion.
Unlike traditional stablecoins backed by fiat reserves, USDe relies on futures contracts. This offered users opportunities for yield generation and participation in Ethena’s short positions. Moreover, Ethena offers avenues for users to generate stablecoins by leveraging assets like staked Ether and Wrapped Bitcoin.
Notably, the observed surge in stablecoin creation has propelled the supply to levels not seen since early 2022. This comes above the emerging bull market, with Bitcoin recently reclaiming the $70K threshold.
The post Stablecoin Injected with Over $4.2B Amid Bull Market Frenzy appeared first on Coin Edition.