Executive Summary: Stablecoins & CBDC’s December 2023

We are delighted to release CCData’s latest Stablecoins & CBDCs Report . In this report, we provide insight into the latest developments in the stablecoin and CBDC sector, focusing on analysis that relates to market capitalisation, trading volume, peg deviation and more. Stablecoins have grown to become a prominent subsector of the digital asset industry, growing significantly in size and interest over the last few years. In this report, we provide insight into the latest stablecoin and CBDC developments, analysing market capitalisation, trading volumes, stablecoin trends, peg deviations, and more. The total market capitalisation of stablecoins rose 0.9% to $129bn (as of Dec 18th), continuing the asset class’s resurgence after adding $4.25bn to their supply in November. This is the highest market capitalisation for stablecoins since May. Stablecoin volumes also continue to trend upwards, with November seeing the highest stablecoin volumes since March. As of the 18th, volumes are on track to record a higher total in December. Key Findings: In November, the total market capitalisation of stablecoins rose 3.43% to $128bn, recording the largest monthly supply increase since February 2022. The market cap is on trend to rise further in December, with the asset class recording a 0.17% increase to $129bn as of the 18th. Meanwhile, stablecoin market cap dominance fell to 8.07% in December, its lowest share since December 2021. In December, the market capitalisation of USDT rose 1.64% to $90.8bn, an all-time high for the stablecoin and recording the first instance of a stablecoin crossing $90bn in market cap. Trading volume for USDT pairs on centralised exchanges also reached $662bn in November, the highest level recorded since March 2023. In December, FDUSD’s market capitalisation rose 92.6% to $1.63bn (as of Dec 18th), recording a new all-time high for the stablecoin . This was also the first time FDUSD achieved the title of fifth largest stablecoin, surpassing BinanceUSD (BUSD), which used to account for nearly 36.4% of Binance’s trading volumes. This shift follows BUSD’s gradual phase-out in favour of TrueUSD and First Digital USD. In December, leading stablecoin issuer Tether announced that they have onboarded the DOJ, FBI and the U.S. Secret Service to prevent the illegal use of USDT. The announcement followed Tether’s freezing of 326 wallets with amounts totalling $435mn on the instruction of US authorities on December 17th. As per on-chain data, Tether has banned a total of 1,237 wallets since it launched, with December accounting for the largest MoM increase on record. Stablecoins & CBDC's Report Stablecoins Add the Largest Monthly Supply Since Feb 2022 In November, the total market capitalisation of stablecoins rose 3.43% to $128bn, recording the largest monthly supply increase since February 2022. The market cap is on trend to rise further in December, with the asset class recording a 0.17% increase to $129bn as of the 18th. Meanwhile, stablecoin market cap dominance fell to 8.07% in December, recording the lowest market share since December 2021. In terms of volume, Stablecoin trading rose 56.2% to $782bn in November, recording the highest stablecoins trading volume on CEXs since March. Volumes are on track to record a higher total in December, with $557bn traded in volume on CEXs as of the 18th. Created using data from CCData USDT Reaches All-time High Market Cap, Surpassing $90bn In December, the market capitalisation of USDT rose 1.64% to $90.8bn, an all-time high for the stablecoin and recording the first instance of a stablecoin crossing $90bn in market cap. Trading volume for USDT pairs on centralised exchanges also reached $662bn in November, the highest level recorded since March 2023. The rise in USDT supply, coinciding with the resurgence of USDT market capitalisation hints at the inflow of new capital to the markets amidst the bullish price action of crypto assets in the recent months. In November, the trading volume of USDT rose to $662bn, the highest since March 2023. Created using data from CCData Binance Announces End of Support for BUSD on December 15th On November 29th, Binance announced that it would be ending its support for popular stablecoin, BinanceUSD (BUSD). December 15th will mark the end of the stablecoin that first started trading on the exchange in September 2019. During its peak, BUSD pairs accounted for 36.4% of the trading on the exchange. Since the SEC lawsuit against Paxos in February earlier this year, Binance started gradually replacing BinanceUSD (BUSD) with TrueUSD (TUSD), and more recently, First Digital USD (FDUSD). The latter saw its market cap surpass $1bn in December, currently accounting for nearly 20% of the volumes on Binance with a monthly volume of $50.8bn. Created using data from CCData Enjoy what you’ve read so far? Visit our website to download the Stablecoin Report and access our full research suite, where we explore topics such as exchange volumes, digital asset investment product flows, DeFi, NFTs, and more! Stablecoins & CBDC's Report Want to stay up to date with everything crypto? Subscribe to our mailing list and get our monthly research reports and insights delivered straight to your inbox. CCData’s suite of market-leading trade, order book, derivatives, blockchain, social, and historical data, spanning thousands of cryptocurrencies and 300+ exchanges, is also available via our API here: https://developers.cryptocompare.com Executive Summary: Stablecoins & CBDC’s December 2023 was originally published in CCData on Medium, where people are continuing the conversation by highlighting and responding to this story.