Stable Dominance: The Big Three – USDT, USDC, and DAI Rule the $172.34B Stablecoin Market

Stablecoins like USDT and USDC have occupied a crucial and unique position within the global crypto space. The fact that most stablecoins are pegged to traditional currencies gives them some level of stability needed for trading, investing, and financial systems. As of October 24, 2024, the stablecoin market has touched the value of $172.34B. In this area, Tether (USDT) is way ahead of the competition, although USD Coin (USDC) and DAI follow close behind. 

Dominance of USDT, USDC, and DAI

Phoenix Group’s data pointed out that USDT is dominating the stablecoins market by having a market capitalization of $120.2B and a daily trading volume of $63B. It has to be noted that Tether is a market leader, as it controls 69.78% of the total stablecoin market. This shows a very heavy dependence on Tether for funds and dealings inside the cryptocurrency ecosystem.

Second on the list is USDC, with a market value of $34.3B and a daily trade volume of $7.2B. Even though it is significantly lower than USDT, USDC remains relevant to investors who want stablecoins that are compliant with regulations and completely transparent.

MakerDAO’s DAI is one of the top five decentralized stablecoins, and it has a market capitalization of $5.3B. Despite having less market share compared to other platforms, DAI is important in DeFi applications and protocols, with a vast volume of $89.2M for the last 24 hours.

Emerging Competitors: FDUSD and USDe

FDUSD, with $2.6B of market capitalization, has $4.5B daily trades. On the other hand, USDe is comparatively new, but it has $ 2.6B in market capitalization and a daily trading volume of $ 77.8M. This competition is ideal for representing the current stablecoin market environment since new entrants to the created ecosystem strive to dominate by aiming at specific segments, such as significant and specific applications or geographic locations.

USDD and PYUSD Gain Momentum

One of the stablecoins worth mentioning is USDD, which has a market volume of $759.7M. Thus, although it does not boast the same type of market share as some of the mega tokens, USDD has been on the rise in terms of adoption. 

Similarly, PYUSD’s market capitalization is $655M, and its daily trading volume is $9.5M. Due to it being natively backed and integrated within PayPal’s vast ecosystem, PYUSD is a purely utility-based and strategic stablecoin to PayPal’s payment empire.

FRAX and TUSD: Small but Prominent

The FRAX is an algorithmic stablecoin with a market capitalization of $ 649.4M. Although it was launched this year alone, it secured its position in DeFi thanks to its working concept, which includes collateralization with algorithms. Meanwhile, TUSD, with a market capitalization of $495.6M, remains an asset-backed stablecoin that ensures the platform’s transparency to its users.

The Road Ahead

The forward evolution of the cryptocurrency industry still depends much on the stablecoin market as it has functioned as the means of smooth trading, bridged the gap between crypto and fiat currencies, and acted as a foundation for DeFi platforms. 

Stablecoins like USDT are a means toward financial inclusion; they calm the unpredictable crypto market by providing a little stability.  In this journey towards the future of finance, these nine stablecoins always leave their mark in the economic and digital world. Hence, investors and institutions should pay attention to this sector by being aware of the changes within it.