The global stablecoin market capitalization reached an unprecedented $190 billion in November, surpassing the previous all-time high of $188 billion set in April 2022. This growth trend reflects sustained global demand for stablecoins as an integral part of the digital finance ecosystem. The sector experienced a robust 9.94% increase from October, marking the highest month-on-month rise since November 2021. This milestone also represents the 14th consecutive month of market cap growth at the end of the month.
USDT (Tether) remains the dominant force in the stablecoin market, with a 10.5% increase in market capitalization to reach $133 billion. This marks the 15th consecutive monthly rise for USDT, which now accounts for 69.9% of the sector. Circle’s USD Coin (USDC) also posted significant growth, climbing 12.1% to $38.9 billion, the highest level since February 2023. Additionally, Ethena Labs’ USDe saw a 42.2% rise to a new all-time high of $3.86 billion. However, other stablecoins such as First Digital USD (FDUSD) and Sky Dollar (USDS) experienced declines in market capitalization in November.
The report indicated that 38 out of 198 stablecoins analyzed reached new all-time highs in November, demonstrating a diverse and competitive market. While USDT, USDC, and USDe were among the largest contributors to the sector’s growth, some stablecoins faced challenges. Euro-denominated stablecoins are emerging as a point of innovation and compliance, positioning Europe as a potential leader in the next phase of stablecoin adoption, despite an 11.4% drop in market cap for Euro-pegged stablecoins.
Stablecoin trading volumes on centralized exchanges surged in November, increasing 77.5% month-on-month to $1.81 trillion as of Nov. 25. This growth trend puts trading activity on track to surpass the yearly record set in March, driven by growing institutional interest and optimism over regulatory clarity in the US. USDT dominated trading activity, accounting for 82.7% of all volume across centralized exchanges, followed by FDUSD with 9.01% market share, and USDC with 8.09% market share. Euro-denominated stablecoins saw a significant 52.9% surge in trading activity to $657 million during the month.
Analysts suggest that while market capitalization reductions may indicate short-term consolidation, the rising trading activity signals steady progress in building utility and compliance under the MiCA framework. As stablecoins continue to evolve, their role as the backbone of crypto trading and settlement becomes increasingly evident. With regulatory clarity expected in the US and Europe, the legitimacy of stablecoins may encourage broader adoption across industries. As stablecoins diversify into new use cases like cross-border payments and yield-generating mechanisms, the sector is primed to play a crucial role in shaping the future of digital finance.
