As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed the evolution of traditional assets and their digital counterparts alike. The September 2024 edition of CCData Research’s “Stablecoins & CBDCs” Report serves as a testament to this transformation.
On the 27th of September, CCData Research revealed the September 2024 issue of their “Stablecoins & CBDCs” Report. This report offers a broad summary of 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 institutions. They gather tick data from reputable global exchanges and combine various datasets to offer a broad market perspective. This encompasses trade details, derivatives, order books, plus historical, social, and blockchain data.
Stablecoin Market Cap Rises for the 12th Consecutive Month
By CCData’s report, the stablecoin market maintained an upward trajectory for the twelfth month in a row in September 2024, with its total market capitalization increasing by 1.50% to reach $172 billion. However, this growth falls short of the levels seen before May 2022, when the Terra Luna de-peg incident caused major turbulence. Contrastingly, while the market cap ascended, trading volumes for stablecoins saw a decrease, with a recorded $683 billion in volume by September 23rd.
Digital Yuan Transaction Volume Crosses 7tn RMB
According to CCData’s report, the digital version of the Chinese yuan has been rapidly growing, hitting a total transaction value of about 7 trillion RMB, which is equivalent to around $988 billion, by the end of June. This marks a growth of 6.10% compared to the previous month and an approximately 300% increase when compared to the transaction volume recorded in June 2023. The increasing transaction volume of the digital yuan indicates China’s significant efforts towards its central bank digital currency (CBDC), as indicated by the People’s Bank of China.
EURCV Expands to Solana Blockchain
The report from CCData additionally highlighted that Societe Generale’s EURCoinVertible (EURCV) digital currency is poised for launch on the Solana blockchain. This shift was prompted by insufficient interest in EURCV on the Ethereum network. Although growth has occurred, trading activities continue to be modest, with the on-chain transfer volume of EURCV amounting to $2.79 million and centralized exchange volume at $290,000 as of September 24th. The objective behind this change is to enhance EURCV’s usefulness and acceptance within the decentralized finance (DeFi) sector.
Fed Interest Rate Cuts to Impact Stablecoin Revenues
In summary, CCData anticipates that the U.S. Federal Reserve’s move to lower interest rates by 0.5% will have a tangible effect on centralized stablecoins like USDT, USDC, FDUSD, PYUSD, and TUSD. The prediction is that this rate decrease will lower their annual interest income by approximately $625 million, as these coins collectively hold $125 billion in U.S. Treasury assets. This reduction in rates is expected to lessen the returns on these holdings, thereby impacting the overall earnings of these centralized stablecoins.
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2024-09-27 20:14