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In its latest report published on May 21, cryptocurrency research firm Diar revealed that the market capitalization for USD stablecoins hit a all-time high. According to the report, stablecoins tied to the USD hit a market cap of $4.3 billion, surpassing all previous records according to Diar’s data. The report also reveals an uptick of nearly 130% in trading volume between April and May. The trading volume hit $3.6 billion in May as compared to $1.6 billion in April.
Diar stated in the report that Circle and Coinbase-backed USDC’s trading volume has increased by 435% since January 2019. However, TrustToken’s USD out-performed USDC in terms of absolute trading volumes despite showing slower month-on-month growth. TrustToken reported $3.8 billion in May so far as compared with $2.88 billion in April.
Another astonishing fact revealed by Diar’s report is that Tether’s (USDT) trading volume so far this year reached $1.3 trillion, already having surpassed the whole of 2018’s amount by $200 million. Thus, Tether still holds the strongest position in the stablecoin market.
Despite the remarkable numbers, stablecoins have struggled to gain a dramatic increase in adoption. The report notes:
“Though numbers impressive, the use case of stablecoins have found little appeal outside of sitting on centralized exchanges.”
Absolute peak addresses for both USDC and TrustUSD have been capped to 5,500 per day despite both showing strong growth in active addresses on the chain. In fact, USDC reported an increase of 540% in active addresses on chain as compared to the start of this year. Diar further states:
“[Coinbase] has now invested and built out its own vision of an ‘Open Financial System’ through various avenues from a non-custodial wallet, to supporting major Decentralized Finance (DeFi) companies that have garnered much attention as of late.”
The report comments on Coinbase’s largest market push to date towards opening up crypto-to-crypto trading to different countries. Coinbase increased the number of countries which have shown their intent to adopt crypto-to-crypto trading by 50. This brings the total tally of all the countries who have onboarded so far to 103. The report praises the success of Coinbase towards raising the number to 103 from a mere 32 a year ago.