November’s market activity has spurred a surge in stablecoin trading, buoyed by the heightened institutional confidence in the digital assets industry.
According to a CCData report on Nov. 27, stablecoin trading volume saw a sharp increase of 77.5%, rising to $1.81 trillion as of Nov. 25. This growth places monthly trading volumes on centralized exchanges on track to hit a yearly high.
Continuing a 14-month upward trend, the total stablecoin market capitalization rose by 9.94% in November, reaching $190 billion and surpassing the previous all-time high of $188 billion from April 2022, prior to the collapse of Terra’s TerraUSD algorithmic stablecoin. Despite this growth, market dominance dropped to 5.54% from 7.22% in October, as investors and traders increased diversification on Bitcoin (BTC) and altcoins.
Tether’s USDt (USDT) continues to show a strong performance, growing its market capitalization by 10.5% to $133 billion. The stablecoin accounts for 69.9% of the overall market, followed by Circle’s USD Coin (USDC), which expanded its market cap by 12.1% to $38.9 billion in November — its highest level since February 2023.
The total stablecoins market cap reached a new high in November. Source: CCData
Related: Tether discontinues support for euro-pegged stablecoin EUR₮
Ethena Labs’ USDe (USDE) also shows growth in performance, posting a 42.2% rise in market capitalization to $3.86 billion. “The surge in demand for the stablecoin can be attributed to heightened interest in the Ethena ecosystem after its proposal to activate revenue share for Ethena (ENA) tokenholders,” notes the report.
The USDe stablecoin was launched in February and currently offers an APY of 21.2%, down from a high of 55.9% in March, according to CCData.
On the other hand, First Digital USD (FDUSD) and Sky Dollar (USDS) — formerly Dai (DAI) — recorded the most significant declines among the top 10 stablecoins in November. FDUSD’s market capitalization fell by 14.9% to $1.90 billion, while USDS dropped by 8.34% to $950 million during the month.