The digital economy‘s heartbeat is resonating through the cryptocurrency domain, underscored by the remarkable growth delineated in the 2024 RWA-Real World Asset Report. This document highlights the pivotal role of stablecoins, particularly those pegged to the US dollar, in propelling the adoption of cryptocurrencies.
Rise of Dollar-Pegged Cryptocurrencies
The report’s key revelations point to the preeminence of US dollar-tethered stablecoins within the crypto sphere. Tether (USDT) leads with a commanding market valuation of $103.9 billion, outpacing USDC at $26.8 billion and Dai at $4.9 billion. With a 71.4% market share, USDT’s supremacy reflects the US dollar’s substantial influence in the sector. Meanwhile, USDC is in a phase of recovery after experiencing a temporary detachment from its dollar peg amid the US banking crisis in March 2023.
US Dollar’s Crypto Market Grip
Further insights from the report suggest a negligible presence for stablecoins tied to non-USD currencies, signifying an ongoing US dollar hegemony in the crypto market. Although the crypto ecosystem mirrors the wider financial world’s dollar-centric nature, it also hints at possibilities for greater diversity and competitive dynamics in this space.
Stablecoin Market’s Limited Diversification
An in-depth examination of the stablecoin landscape reveals scant diversification beyond those anchored to the US dollar. Collectively, alternative fiat-linked stablecoins like Euro Tether (EURT), CNH Tether (CNHT), Mexican Peso Tether (MXNT), EURC, Stasis Euro (EURS), and BiLira (TRYB) amass a mere 1% of total market share.
The report charts the stablecoin market’s overall value progression, peaking at $150.1 billion in March 2024 from a humble $5.2 billion at the start of 2020. Despite fluctuations bringing the value slightly down to $149 billion, the market’s trajectory suggests continued US dollar-pegged stablecoin authority, with some potential for diversification and growth in market shares among differing stablecoins.