Stablecoin Supply Soars To Near 2-Year High As USDe Gains Traction

• At the close of last week, the total supply of USD-pegged stablecoins reached $165 billion, its highest point in almost two years.
• Ripple projected earlier this month that the stablecoin supply would grow to $2.8 trillion by 2028.

The total supply of U.S. dollar-pegged stablecoins seems to be inching toward its previous record, as the issuance of new tokens fosters a more competitive environment.

Near the end of last week, the total supply of USD-pegged stablecoins reached $165 billion, its highest level in almost two years, as noted by CoinNerd Data Dashboard. The growth in stablecoin supply has been supported by Ethena’s “synthetic dollar” or USDe stablecoin, whose market cap has recently leveled off around $2.4 billion.

When the total stablecoin market hit $165 billion last Thursday, it was the highest supply mark since late June 2022, according to CoinNerd Data Dashboard. The all-time record for stablecoin supply exceeds $180 billion.

Increasing Supply & Expanding Options

The USD-pegged stablecoin market, historically dominated by Tether’s USDT and Circle’s USDC, is expanding in terms of total supply and a growing range of choices. USDT holds the leading position with roughly a 70% market share, according to data from DeFiLlama.

Alongside Ethena’s recent stablecoin launch just over two months ago, Silicon Valley-based PayPal introduced its own stablecoin in partnership with Paxos in August 2023. Additionally, Ripple announced plans to launch a USD-pegged stablecoin later this year.

When Ripple announced its upcoming stablecoin, the company predicted that the total stablecoin market would surge in the next few years, potentially reaching $2.8 trillion by 2028.

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