The demand for this coin grew manifold with 370% year-over-year growth
The cryptocurrency industry grew significantly in 2021. Despite several headwinds, its total market cap grew by 187.5% in 2021. However, it’s interesting to note that stablecoins overtook all other types of coins. It “continues growing faster than the rest of the crypto market,” according to Arcane Research’s latest report.
Total stablecoin supply across protocols is closing in on $200 billion from $29 billion at the start of 2021, with current levels around $180 billion, the report noted. This is after the supply grew a whopping 388% in 2021, The Block had previously found.
Source: Arcane Research
In its report, The Block had further highlighted that demand for the asset class also grew in tandem with its supply throughout the year. Annual stablecoin adjusted transaction volume crossed $5 trillion in 2021. This was an over 370% year-over-year growth.
While the cryptocurrency class has found “product-market fit and broader institutional acceptance”, its growth can also be attributed to the surge in DeFi and derivatives trading during this time. Both markets make use of stablecoins to transact between different cryptocurrencies or withdraw funds in order to avoid price volatility since most stablecoins are pegged to dollars or other fiat currencies.
Source: The Block
Interestingly, those stablecoins that continue to captivate the market include USD Tether, which has a 44% market share, followed by USD Circle with 29%, and Binance USD (BUSD) with 20%.
Surprisingly, USDC’s growth over the past year was recorded to be the fastest at 20%, which could be seen continuing well into 2022. In fact, Circle, the firm behind USDC, is even planning to go public through a SPAC later this year. After signing a new acquisition agreement last
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