Stablecoin Trading Volume Reaches $1.8 Trillion in November, Set for Record Highs in 2024

Stablecoin trading volumes surged dramatically in November, marking a significant uptick in activity and positioning the market to reach new annual highs in 2024. Fueled by growing institutional confidence in the digital assets space, stablecoins have seen a notable rise in demand.

According to a report from CCData on November 27, stablecoin trading volumes increased by 77.5%, reaching $1.81 trillion as of November 25. This spike in trading activity puts monthly volumes on centralized exchanges on track to break previous records and hit a new yearly high.

In addition to the trading volume surge, stablecoin market capitalization also continued its upward trajectory. For the 14th consecutive month, the total market cap rose by 9.94% in November, reaching $190 billion. This marked a new all-time high, surpassing the previous record of $188 billion set in April 2022, before the collapse of the TerraUSD algorithmic stablecoin. However, despite the growth in overall market capitalization, stablecoins’ market dominance fell from 7.22% in October to 5.54%, as traders increasingly diversified into assets like Bitcoin and altcoins.

Tether (USDT) and USD Coin (USDC) Lead the Way

Among the leading stablecoins, Tether (USDT) continues to show impressive performance. Its market capitalization grew by 10.5%, reaching $133 billion, representing 69.9% of the overall stablecoin market. USD Coin (USDC), issued by Circle, also saw notable growth, expanding its market cap by 12.1% to $38.9 billion—its highest level since February 2023.

Newer entrants into the stablecoin market are also showing growth. Ethena Labs’ USDe (USDE) saw a remarkable 42.2% increase in its market cap, reaching $3.86 billion. This rise in demand for USDe can be attributed to heightened interest in the Ethena ecosystem, particularly following its proposal to offer revenue shares to Ethena (ENA) tokenholders. Since its launch in February, USDe has offered a competitive annual percentage yield (APY) of 21.2%, though down from a peak of 55.9% earlier in the year.

Declines in Other Stablecoins

However, not all stablecoins experienced growth in November. First Digital USD (FDUSD) and Sky Dollar (USDS), previously known as Dai (DAI), recorded significant declines. FDUSD saw its market cap drop by 14.9%, falling to $1.90 billion, while USDS declined by 8.34%, bringing its market cap down to $950 million.

As stablecoin trading volumes continue to rise, and the market cap reaches new heights, the stablecoin sector remains a key pillar of the digital asset ecosystem. The increasing diversification in the market reflects the growing maturity of the industry, with traders seeking both stability and innovation across a wider range of digital assets.