The post Stablecoin supply reaches $162 billion amid rising institutional demand and liquidity hunt appeared on BitcoinEthereumNews.com.

Key Takeaways Stablecoin supply grew by 3% in August, reaching $162.1 billion despite crypto market downturn. Tether (USDT) leads the stablecoin market with a $119 billion market cap, followed by USDC at $33.5 billion. The stablecoin supply is at $162.1 billion following a $4.7 billion rise in August, which represents a 3% monthly growth, Artemis’ data reveals. This movement represents different trends in the market, such as institutional adoption, the search for stability and liquidity, and growth in confidence. Notably, the growth in stablecoin supply came in the same month when Bitcoin (BTC) retraced nearly 9%, followed by the broad crypto market.  Tether USD (USDT) dominates the market, showing a $119 billion market cap. This is a major lead against USD Coin’s (USDC) $33.5 billion supply, which is the second-largest stablecoin issuer. Sky’s stablecoin DAI comes in third, with market participation of $5.3 billion. Chasing solid ground Anastasija Plotnikova, CEO & co-founder of Fideum, told Crypto Briefing that this disparity reflects a shift in investor behavior, who are now swapping their holdings for a more stable and liquid alternative. “While this trend can bolster the overall health of the crypto market by providing a safe haven for assets, it also raises critical questions about their long-term stability. The ongoing evolution of stablecoins will likely play a crucial role in shaping the future landscape of the cryptocurrency market,” she added. Elaborating on the long-term stability, Plotnikova mentions the European Union (EU) regulatory framework Markets in Crypto-Assets Regulation (MiCA), which imposes new rules for stablecoins, adding layers of compliance and oversight.  Although the results of these regulatory changes in the EU are yet to be seen, Fideum’s CEO believes that stablecoins will continue to be essential for facilitating international low-cost transactions, and driving demand and adoption in the crypto ecosystem. Institutional adoption…

---

Filed under: News - @ September 6, 2024 4:21 pm