Stablecoin Market Shows Growth in October Despite Varied Supply Dynamics

In October, the stablecoin market witnessed an overall increase, adding over $600 million to its total valuation despite supply fluctuations among the top tokens. While the market experienced growth, six out of the top ten stablecoins saw reductions in their supplies during the month.

Fiat-Pegged Token Market Sees Modest Growth,

Led by First Digital and Tether Last month, Tether (USDT), the largest stablecoin by market capitalization, saw a 1.9% increase in its supply, bringing its market valuation to approximately $84.98 billion, up from $83.22 billion at the end of September 2023.

Tether also dominated global trade volume, accounting for over 27% of the total $71.77 billion traded across 456 exchanges listing the stablecoin in the past 24 hours.

Furthermore, the overall fiat-pegged market grew from $123.05 billion to $123.66 billion in October, representing a modest increase of 0.495%, or $608 million, in the stablecoin market.

However, some stablecoins experienced reductions in their supplies. Circle’s USD Coin (USDC) saw a 3.4% decrease, resulting in a market valuation of $24.50 billion. MakerDAO’s DAI and TrueUSD (TUSD) also saw reductions of 3% and 3.1%, respectively.

Notable Reductions and Surges in Supply Binance USD (BUSD) experienced a significant 13.1% reduction in its supply, bringing its market valuation below $2 billion to $1.95 billion. Meanwhile, First Digital USD (FDUSD) saw an impressive 45.1% increase in supply, becoming the eighth-largest stablecoin.

Among the top ten stablecoins, Pax Dollar (USDP) witnessed a 6.7% reduction, while Liquity USD (LUSD) faced a 12.6% decrease in supply over the past month. Additionally, Paypal’s newly introduced dollar-pegged token quickly rose to become the 15th largest stablecoin.

What are your thoughts on the stablecoin market’s performance in October? Share your insights in the comments below.

[Tags: Stablecoin market, Tether, USDC, DAI, BUSD, FDUSD, USDP, LUSD, cryptocurrency]

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