The total market capitalization of stablecoins has been increasing for nearly a year now, according to blockchain analytics firm CCData.
In a new report, CCData says the total market cap of stablecoins rose by $169 billion in August, up by 2.89% from last month.
The increase marks the 11th time in a row that the market cap for stablecoins broke the previous month’s record.
“This is the highest end-of-month market capitalization recorded since April 2022.
This also represented an all-time high market capitalization for the asset class, excluding algorithmic stablecoins.”
Payments giant PayPal’s stablecoin is also seeing a surge in market cap as the trading volume of Paypal USD (PYUSD) on centralized exchanges rose by 80.6% to $320 million.
“The recent spike in demand is likely due to attractive incentives offered on decentralized lending protocols for PYUSD, with dApps including Drift Protocol offering up to 18% APR in yield. On-chain data shows that over 50% of PYUSD is serving as collateral on lending protocols and quote pairs on DEXs.”
PYUSD is now the sixth-largest stablecoin by market capitalization. In August, the asset’s market cap increased by 6.6% to $960 million, representing the fifth consecutive month of growth and a new all-time high.
USDT, the biggest stablecoin on the market, has a market cap of $118 billion.
Generated Image: Midjourney