The stablecoin supply soared by 388% this year, with the aggregate value surging by over four times, according to the latest report by The Block Research.
- The aggregate supply of stablecoins has ballooned to a valuation of over $140 billion from $29 billion at the start of the year, driving growth in coins such as Tether and USD Coin.
- The increase was attributed to retail traders parking their stablecoins on decentralized finance protocols, as these have been used by trading firms to dampen volatility.
- Circle Chief Executive Officer Jeremy Allaire said companies are expected to turn stablecoins to improve payments next year, along with the increase in retail traders and firms keen on holding stablecoins.
Allaire said demand is being seen across many fronts, such as decentralized finance and centralized finance, along with higher usage for payments. USDT is flat, while USDC is down 0.03%.