The stablecoin market has surged to unprecedented levels, reaching a total market capitalization of $190 billion in November 2024, as reported by CCData. This marks a 9.94% increase from the previous month and a new all-time high, surpassing the previous record set in April 2022 before the collapse of TerraUSD.‍

‍Key Drivers Behind the Growth

According to CCData, the market saw its 14th consecutive monthly increase, reflecting growing demand from institutional investors and heightened activity in the digital asset sector.

USDT, issued by Tether, continues to dominate the stablecoin landscape, with a market share of 69.9% and a market cap that rose to $133 billion in November. USD Coin (USDC), its closest competitor, also saw significant growth, with its market cap increasing by 12.1% to $38.9 billion.‍

Trading Volumes Soar

Trading volumes for stablecoins on centralized exchanges increased by 77.5% in November, reaching $1.81 trillion. USDT led the pack, accounting for 82.7% of the total volume, followed by First Digital USD (FDUSD) and USDC with 9.01% and 8.09% market shares, respectively.‍

Innovations in the Stablecoin Sector

Recent developments have also contributed to the market's expansion. Tether's investment in the Dutch firm Quantoz aims to introduce MiCAR-compliant stablecoins EURQ and USDQ, while Paxos acquired Finnish EMI Membrane Finance to enhance its Euro-denominated stablecoin offerings.

Meanwhile, Ethena Labs' USDe stablecoin reached a new all-time high market cap of $3.86 billion, driven by increased interest in its ecosystem and the proposal for revenue-sharing mechanisms for ENA token holders.

Despite the growth, certain segments, such as Euro-denominated stablecoins, saw declines. Euro stablecoin market caps fell 11.4% to $256 million in November, while trading volumes for these assets rose by 52.9% to $657 million.