In June, stablecoin trading volume on centralized crypto exchanges (CEX) hit a seven-month low, declining by 18% to $97 billion, according to CCData. Despite this, the global market capitalization of stablecoins continued to rise, increasing by 0.53% month-on-month to reach $161 billion. This marks the highest stablecoin market capitalization since April 2022, although the growth rate has slowed compared to May.
CCData reports that the market share of stablecoins rose from 6.22% in May to 6.83% in June. This uptick is attributed to investors shifting from more volatile digital assets like Bitcoin and Ethereum to the stability offered by stablecoins amidst market uncertainties.
In June, Tether USD (USDT), the leading stablecoin by market capitalization, maintained its dominance with a 0.97% increase in market capitalization compared to May. USDT commanded a substantial 70% market share during this period.
Additionally, other stablecoins such as Ethena’s USDe saw notable growth, with USDE’s market capitalization rising by 21.2% in June alone, marking six consecutive months of growth.
Despite the overall rise in stablecoin market capitalization and market share, the decrease in trading volumes reflects broader market uncertainties. This trend has persisted since April, coinciding with the Bitcoin halving event, which historically influences market activity and behavior.
A June report from Coinbase presents a positive long-term outlook for the stablecoin segment. The report emphasizes increasing interest and utility of stablecoins, particularly in cross-border transactions.
PayPal’s introduction of fee-free cross-border stablecoin transfers across 160 countries stands out as a significant development. In addition, stablecoins processed an annual settlement volume of $10 trillion in 2023, surpassing global remittances by more than tenfold. This substantial volume underscores the increasing acceptance and reliance on stablecoins for various financial transactions.
According to the Coinbase report, many top companies recognize the potential benefits of stablecoins and other tokens, particularly for faster and cheaper transactions. Seven out of ten Fortune 500 executives express interest in exploring stablecoin use cases, particularly for instant processing times and reduced fees.
