Stablecoins are on the rise, according to a crypto data firm.
The platform CCData notes in a new report that stablecoin market cap rose 2.11% last month, the 10th consecutive end-of-month market cap increase for the sector.
“This is the highest monthly rise in the stablecoins market capitalization since April, suggesting inflows of new capital into the markets as reflected by the positive price action of digital assets in July.”
The stablecoin market cap is now at its highest point since April 2022. July’s increase materialized despite a 1.43% dip in the market cap of European stablecoins, which fell for the 7th consecutive month.
Regarding stablecoins that aim to maintain a 1:1 peg to the US dollar, USDC’s market cap surged to $33.6 billion, an increase of 5.36%. USDC is the second-ranked stablecoin by market cap.
The top stablecoin, Tether (USDT), witnessed more modest gains in July, increasing by 1.61% to a market cap of $114 billion.
Despite the increase in market cap, stablecoin trading volume fell for the fourth consecutive month, dropping by 8.35% to $795 billion (as of July 25th), according to CCData.
The data firm notes that volumes are currently trending higher, however, attributing the rise to the recent launch of spot Ethereum (ETH) exchange-traded funds and last week’s Bitcoin Conference.
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