The market capitalization of tokenized gold climbed to a document $1.4 billion in March with buying and selling volumes hovering to yearly highs, CoinDesk Knowledge’s month-to-month stablecoin report exhibits.
The expansion in market worth and exercise occurred alongside the bodily yellow steel’s rally to recent all-time highs above $3,000 per ounce. Tether’s gold-backed token (XAUT) and Paxos’ PAXG dominate among the many choices, with market capitalizations of $749 million and $653 million, respectively.
The buying and selling quantity with gold tokens surpassed $1.6 billion by way of the month, the very best stage in additional than a 12 months, in line with the report.
The general stablecoin market, which incorporates tokens with costs pegged to fiat currencies and commodities, climbed above $231 billion market cap this month, rising for the 18th consecutive month, the report mentioned.
Tether’s USDT, the most important stablecoin available on the market, additionally elevated to a document provide of $144 billion. Nonetheless, its market share dropped to the bottom stage (62.1%) since March 2023 because the stablecoin panorama is getting more and more aggressive. Circle’s USDC, the second-largest stablecoin, grew 7% in a month to close $60 billion.
Decentralized finance protocol Ethena’s just lately launched greenback stablecoin USDtb, which makes use of BlackRock’s tokenized cash market fund BUIDL as a reserve asset, rapidly devoured up over $1 billion of belongings to grow to be the eighth largest by market cap.
By way of buying and selling volumes on centralized exchanges, USDT’s dominance barely declined, however nonetheless stood above competitors at 75.7% by way of the month among the many prime ten stablecoins. In the meantime, USDC and Hong Kong-based First Digital’s FDUSD noticed their buying and selling market cap dominance rise to 13.6% and 10%, respectively.
Regulatory shifts have been reshaping the market of euro-denominated stablecoins, as exchanges moved to adjust to the Markets in Crypto-Property (MiCA) framework. Kraken delisted USDT and different non-compliant stablecoins for European customers, following the footsteps of different exchanges reminiscent of Coinbase and Crypto.com.
Circle’s EURC stablecoin was a notable beneficiary of the developments, rising practically 30% to $157 million market cap and claiming a forty five% market share of all euro stablecoins.