CCData: Total Market Cap of Stablecoins Rises for 11th Straight Month, Setting New Records

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As a seasoned researcher with years of experience delving into the intricacies of digital assets and blockchain technology, I must say that the August 2024 edition of CCData Research’s “Stablecoins & CBDCs” report is nothing short of impressive. The depth and breadth of their analysis are truly commendable, providing a holistic view of the dynamic world of stablecoins and central bank digital currencies (CBDCs).

On August 29th, 2024, CCData Research published their August 2024 edition of the “Stablecoins & CBDCs” report. This detailed report offers insights into the latest trends and market movements within the stablecoin and central bank digital currency (CBDC) industries.

Under the supervision of the Financial Conduct Authority (FCA), CCData stands out as a leading supplier of high-quality digital asset information for institutional use. They gather tick data from reputable exchanges worldwide and combine various datasets to offer a broad market perspective. This includes details about trades, derivatives, order books, along with historical, social, and blockchain data.

In this article, we take a look at the key takeaways of this comprehensive, well-researched report.

CBDCs

During August, several nations experienced significant advancements in their digital currency development. For instance, Azerbaijan’s central bank expressed worries about introducing a Central Bank Digital Currency (CBDC) and its potential effects on monetary policy. Conversely, the Bank of Russia expresses optimism, anticipating that the digital ruble will be broadly adopted within the next 5 to 7 years as part of their financial system modernization initiative. Additionally, Indonesia moved forward in the second phase of their CBDC trial, focusing on more diverse applications.

As per CCData reports, India’s Central Bank Digital Currency (CBDC) project reached a significant milestone in August, as 5 million users are now involved, showing a rapid pace of adoption. Meanwhile, Hong Kong has made strides towards a tokenized market with the debut of a WCBDC sandbox, indicating substantial advancement in its CBDC development. Furthermore, Palau grabbed attention with a pioneering CBDC transaction on the XRP Ledger, highlighting the growing importance of blockchain-based digital payments on a global scale.

Stablecoins

In August, the stablecoin market experienced a significant surge, leading to an approximately 2.89% increase in its total market capitalization, reaching a staggering $169 billion. This growth marks the eleventh straight month of increase and sets a new all-time high for the market cap at the end of any month since April 2022, excluding algorithmic versions.

According to CCData, PayPal’s PYUSD saw a significant boost in both market value and trading activity throughout August. The market value of PYUSD swelled by 56.6%, reaching $960 million, which marks the fifth straight month of growth and cements its status as the sixth-largest stablecoin in terms of market cap. This rise in demand for PYUSD is largely due to appealing incentives offered on decentralized lending platforms.

The report indicates that there was a substantial boost in the desire for Euro Coin (EURC), causing its market value to soar by 71.3% to $53.7 million during August. This spike marks the highest market value for EURC since October 2022, with demand being fueled by the introduction of MiCA regulations. Consequently, trading activity for EURC pairs on centralized exchanges has escalated for the third consecutive month, reaching a total of $36.7 million in August.

To sum up, CCData shows that Tether’s USDT reached a record market capitalization of $117 billion in August, marking a 2.59% growth. Additionally, Tether unveiled plans to broaden its product line by launching new stablecoins linked to the British Pound (GBP) and UAE Dirham (AED), increasing its total stablecoin offerings to eight.

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2024-08-29 18:51