November's market activity has spurred a surge in stablecoins trading, buoyed by the heightened institutional confidence in the digital assets industry.
Stablecoins trading volume on centralized exchanges soared in November, surging by 77.5% to reach $1.81 trillion as of Nov. 25, according to a CCData report on Monday.
The growth in stablecoins trading comes amid a broader uptick in market activity, with total trading volumes on centralized exchanges set to hit a yearly high in November.
Continuing a fourteen-month upward trend, the total stablecoin market capitalization rose by 9.94% in November, reaching $190 billion and surpassing the previous all-time high of $188 billion from April 2022, prior to the collapse of TerraUSD.
Despite this growth, market dominance dropped to 5.54% from 7.22% in October, as investors and traders increased diversification on Bitcoin (BTC) and altcoins.
Tether (USDT) continues to show a strong performance, growing its market capitalization by 10.5% to $133 billion. The stablecoin accounts for 69.9% of the overall market, followed by Circle’s USD Coin (USDC), which expanded its market cap by 12.1% to $38.9 billion in November — its highest level since February 2023.
Ethena Labs’ USDe (USDE) also shows growth in performance, posting a 42.2% rise in market capitalization to $3.86 billion. “The surge in demand for the stablecoin can be attributed to heightened interest in the Ethena ecosystem after its proposal to activate revenue share for Ethena (ENA) tokenholders,” notes the report.
The USDe stablecoin was launched in February and currently offers an APY of 21.2%, down from a high of 55.9% in March, according to CCData.
On the other hand, First Digital USD (FDUSD) and Sky Dollar (USDS) — formerly Dai (DAI) — recorded the most significant declines among the top ten stablecoins in November. FDUSD’s market capitalization fell by 14.9% to $1.90 billion, while USDS dropped by 8.34% to $950 million during the month.
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