Stablecoin Market Sees Historic Shifts: USDT Hits Record $90.8B, FDUSD Surges, and Binance Drops BUSD

Stablecoin Market Sees Historic Shifts: USDT Hits Record $90.8B, FDUSD Surges, and Binance Drops BUSD

Crypto News – In the dynamic world of stablecoins, December marked a significant shift in the landscape, with the overall market cap dominance dipping to a mere 8.07%. This figure represents the lowest market share since December 2021, a notable change despite the addition of the largest monthly supply since February 2022.

Despite this downturn, the total market capitalization of stablecoins experienced a notable increase, rising 3.43% to reach $128 billion in November, according to a detailed report by CCData. The trend suggests a continued upward trajectory for the asset class, which has already surpassed $129 billion as of December 18.

A historic milestone was achieved in the stablecoin arena with USDT‘s market capitalization climbing to an unprecedented $90.8 billion in December, marking the first time any stablecoin has crossed the $90 billion threshold. This record-breaking moment also represents the fourth consecutive month of growth for USDT, solidifying its position as the leading stablecoin. Currently, USDT boasts a market dominance of 70.2% among the top 10 stablecoins, the highest since January 2021.

USDT Dominates with Record Trading Volume, FDUSD Rises Sharply, and Binance Phases Out BUSD

The trading activity of USDT pairs on centralized exchanges was equally remarkable, reaching a towering $662 billion in November. This volume is the highest recorded since March 2023, illustrating the stablecoin’s growing prominence in the market, as highlighted by CCData researchers.

December’s spotlight also shone on First Digital USD (FDUSD), which saw a staggering 92.6% increase in market capitalization to $1.63 billion, setting a new all-time high for the digital currency. This surge propelled FDUSD past BinanceUSD (BUSD) to become the fifth largest stablecoin, trailing only behind USDT, USDC, Dai, and TrueUSD.

In a significant development, Binance announced its decision to cease support for its native stablecoin, Binance USD (BUSD). The stablecoin had been on a downward spiral for 13 consecutive months, plummeting to a market cap of $1.47 billion in December. Once a major player, BUSD previously accounted for nearly 36.4% of Binance’s trading volumes. However, following a Wells Notice from the US SEC in February, the stablecoin has been gradually phased out in favor of alternatives like TrueUSD and First Digital USD.