Stablecoin Market Swells With Growth in March, Led by Ethena’s USDE

This month we have witnessed a continuous expansion in the stablecoin domain, eclipsing the $150 billion mark on March 20, 2024, with an infusion of an additional $1.4 billion into the arena since then. Leading the pack in supply growth for March was Ethena’s USDE, soaring by 194.9% over the last 30 days.

Top Dollar-Pegged Token Valuations Climb in March; Key Players Shift Ground

As the cryptocurrency market rides a bullish wave, the stablecoin sector has experienced consistent monthly growth throughout the year. The tally for March reflects this trend, with the market for U.S. dollar-pegged digital currencies increasing from $143.3 billion to $151.4 billion. Although certain stablecoins witnessed a dip in their supplies, the total market capitalization of the stablecoin ecosystem advanced by more than $8 billion. Tether (USDT), the heavyweight in the stablecoin category, experienced a 6.3% growth in supply this month.

Tether’s market valuation now stands at approximately $104.5 billion. Circle’s USDC experienced a notable expansion in its supply this month, climbing by 13.1% to reach a current market capitalization of $32.46 billion. Essentially, USDC has returned to its position from a year ago, after its supply dipped below 24 billion in mid-November 2023. Just a month prior, USDC boasted a market cap of $28.7 billion. Makerdao’s DAI witnessed a slight decrease in supply by 1.7%, now valued at approximately $4.9 billion.

First Digital’s FDUSD encountered the steepest decline among the top five, shedding 22.1% of its supply over the past month. Following this decline, FDUSD’s market valuation now hovers at $2.56 billion. In contrast, Ethena’s USDE experienced a substantial expansion, with its supply ballooning by 194.9% in March, elevating its market valuation to $1.53 billion. Tron’s USDD saw a slight decrease of 0.8% this month, with the coin’s current market cap at about $732.4 million. Frax’s FRAX saw a marginal increase in supply by 0.1%. Trueusd faced a significant contraction in March, with the TUSD supply plummeting by 60.1% to $494 million.

According to historical data, TUSD’s supply has not been as low since April 2021. Paypal’s PYUSD experienced a rough March, declining by 38.2% over the month, bringing its market valuation to approximately $188.4 million. Just below PYUSD, Alchemix’s ALUSD saw a modest supply increase of 1.2% this past month. As the tenth largest stablecoin by market cap, ALUSD now stands at a $166.6 million valuation. Other USD-backed stablecoins such as CRVUSD, USDP, and GUSD also faced declines, dropping around 4.2%, 28.9%, and 9.8% respectively.