Stablecoin supply hits highest level in nearly two years amid USDe growth
Quick Take
- Towards the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest level in nearly two years.
- Ripple said earlier this month that supply will hit $2.8 trillion by 2028.
The total supply for U.S. dollar-pegged stablecoins appears to be trending towards its previous all-time high as the issuing of new tokens creates an increasingly more competitive space.
Toward the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest token level in nearly two years, according to The Block Data Dashboard. The expanding supply of stablecoins has been buoyed by the rising market cap of Ethena’s “synthetic dollar," or USDe stablecoin, which in recent days has plateaued around $2.4 billion.
When the total stablecoin market hit $165 billion last Thursday, that constituted the highest mark for supply since late June 2022, also according to The Block Data Dashboard. The all-time record high for supply is over $180 billion.
Growing supply and options
The USD-pegged stablecoin market, long dominated by Tether's USDT and Circle's USDC, is growing in terms of total supply and the number of choices. USDT is the clear leader with about a 70% market share, according to DeFiLlama data.
Besides Ethena's new stablecoin launching a little more than two months ago, Silicon Valley-based PayPal launched its own stablecoin with Paxos in August 2023. Then earlier this month, Ripple announced it has plans to launch a USD-pegged stablecoin later this year.
At the time of its announcement, Ripple suggested the total stablecoin market would explode in the coming years and hit $2.8 trillion by 2028.
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