Stablecoin Trading Volume Hits $1.8 Trillion in November, Marking a 2024 High
Stablecoin trading activity surged to new heights in November, driven by renewed institutional confidence and increased market engagement with digital assets. According to a report from CCData on November 27, stablecoin trading volume reached $1.81 trillion as of November 25 — a sharp 77.5% increase from the previous month. This surge positions November as the highest-volume month for stablecoin trading on centralized exchanges in 2024.
Market Cap Reaches New High Amid Rising Demand
The total market capitalization of stablecoins rose by 9.94% in November, climbing to $190 billion. This figure surpasses the previous all-time high of $188 billion recorded in April 2022, prior to the collapse of the TerraUSD (UST) algorithmic stablecoin.
Despite the significant growth in trading volume, stablecoins’ market dominance dropped to 5.54%, down from 7.22% in October. This shift reflects a diversification trend as investors reallocate funds into Bitcoin (BTC) and other altcoins amid renewed optimism in the broader crypto market.
Key Players in the Stablecoin Market
Tether (USDT) Dominates the Market
Tether’s USDT continues to lead the stablecoin market, with its market capitalization growing by 10.5% to reach $133 billion. This increase solidifies USDT’s dominance, now accounting for 69.9% of the total stablecoin market. Tether remains the most widely used stablecoin for trading on centralized exchanges and across decentralized finance (DeFi) platforms.
USDC and USDe See Significant Growth
Circle’s USD Coin (USDC) experienced a notable resurgence in November, with its market capitalization rising by 12.1% to $38.9 billion — the highest level since February 2023. The increase reflects a renewed interest in USDC as a go-to stablecoin for institutions and large traders.
Ethena Labs’ USDe also posted strong gains, with its market capitalization jumping 42.2% to $3.86 billion. The report attributes this surge to increased demand for the Ethena ecosystem after the proposal to introduce revenue-sharing for Ethena (ENA) token holders. The USDe stablecoin, which launched in February 2024, currently offers an annual percentage yield (APY) of 21.2%, though this has declined from a peak of 55.9% in March.
Declines Among Lesser-Known Stablecoins
Not all stablecoins shared in the November success. Two prominent tokens saw their market capitalizations decline:
- First Digital USD (FDUSD): Market capitalization dropped 14.9% to $1.90 billion.
- Sky Dollar (USDS) (formerly Dai): Market cap declined by 8.34%, settling at $950 million.
These declines highlight the volatility and competitive pressures facing smaller stablecoins as investors consolidate their holdings in dominant tokens like USDT, USDC, and USDe.
What’s Fueling the Surge?
The rise in stablecoin trading volume reflects broader trends in the crypto market, including heightened interest in Bitcoin and altcoins. With institutional investors returning to the crypto market, stablecoins have seen increased usage as an on-ramp for fiat-to-crypto conversions and as a vehicle for low-volatility crypto storage.
Another key driver is the growing adoption of decentralized finance (DeFi) protocols, where stablecoins play a pivotal role in liquidity provision and yield farming. The Ethena ecosystem, in particular, has drawn attention following its proposal to activate revenue-sharing for token holders, fueling demand for its USDe stablecoin.
Stablecoins remain a crucial part of the crypto market infrastructure, with November 2024 setting a new benchmark for trading activity. The surge to $1.8 trillion in trading volume highlights growing institutional demand, while the rise in total market capitalization points to broader adoption of stablecoins as essential tools in both centralized and decentralized markets. As USDT, USDC, and USDe consolidate their dominance, smaller stablecoins like FDUSD and USDS face pressure to maintain relevance in an increasingly competitive market.