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Stablecoins News: Record-Breaking Activity in May as Supply Reaches $244 Billion
May was a monumental month for stablecoins, as transactions surged beyond typical token exchanges. A vast number of people and services opted for dollar-pegged stablecoins for transferring value. This spike in activity suggests that stablecoins are becoming the primary method for on-chain payments.
Spike in Wallet Activity
According to Artemis data, the number of wallets engaging in stablecoin transactions exceeded 33 million in May, marking a significant increase from previous months. This upsurge indicates a growing preference for these digital dollars over native crypto tokens. Traders, DeFi enthusiasts, and the general public increasingly relied on stablecoins to maintain their funds’ value closely tied to the US dollar. This trend coincided with a rejuvenation in the broader market, where rising prices bolstered overall confidence.
Shift to Faster Networks
Reports highlighted that the BNB Smart Chain facilitated over 10 million active wallets for stablecoin transactions early in May, closely followed by TRON with just over 9 million. These networks are favored for their low fees and high speed, appealing to users who wish to avoid the higher costs associated with older chains. By the end of the month, both networks were poised to surpass these figures, reflecting a robust demand for swift, economical payment solutions and DeFi transactions, areas where Ethereum currently lags due to higher fees.
Stablecoin Supply Growth
The total supply of stablecoins expanded to $244 billion, a near 3% increase in just one month. Tether (USDT) continued to dominate, boosting its supply by nearly $4 billion in May, with most of the new USDT allocated on TRON. Presently, TRON holds approximately $78 billion in USDT, with Ethereum following at $73 billion. Conversely, USDC saw a slight decrease in its supply due to reductions on Solana, yet it still maintains about $60 billion in circulation across various chains.
Payments and Bridges Overtake Cards
Not only did stablecoins see a rise in supply and usage, but they also facilitated over $2 trillion in transactions over the past 30 days, surpassing volumes handled by many debit and credit cards. For instance, Visa’s transaction volumes were lower than those of stablecoins during the same period. Additionally, cross-chain movements of USDC surged, with the CCTP bridge experiencing an 83% increase in traffic, amounting to $7.7 billion.
To explore more about the dynamic world of cryptocurrencies and stablecoins, visit [Binance](https://www.binance.com/).
For further detailed insights and updates in the finance sector, check out [Financier News](https://www.financier.news/).
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