The Zhitong Finance App learned that after the notorious “stablecoin crash” triggered by the stablecoin TerraUSD in 2022 hit market sentiment hard, the overall market value of the stablecoin market slowly entered an upward curve and recently grew rapidly, reaching a new height. According to DeFilLama's statistics, as of last Sunday, the global stablecoin market capitalization has risen sharply by 46% this year, and the total market value has surpassed 190 billion US dollars, reaching a record high.

Stablecoins (Stablecoins) are also cryptocurrencies designed to keep the price consistent with fiat currency (usually the US dollar) over the long term. Over the past period, their main use was as a channel for traders to transfer funds to and from other cryptocurrencies. However, now more and more investors are optimistic that as Trump, who strongly supports the development of cryptocurrencies, returns to the White House, stablecoins may play a more important role in global commerce and trading systems, especially as a stable payment tool for cross-border payments.

Stablecoin market capitalization surpasses historical records set in the Terra era

Tether issued USDT, the world's largest stablecoin. The circulation of this cryptocurrency soared to nearly $133 billion, accounting for about 70% of the total stablecoin market. The company hopes to expand the use of the USDT stablecoin by entering more new fields, including commodity trading. According to information, the company recently announced financial support for its first crude oil transaction in the Middle East.

Meanwhile, the $70 billion fintech giant Stripe said in October that it plans to buy stablecoin-focused startup Bridge for $1.1 billion, which would be one of the largest digital asset startup acquisitions ever. Additionally, other traditional fintech companies, including PayPal, have begun to get involved in the stablecoin sector.

Expectations of full acceptance of stablecoins by these fintech giants may help avoid the kind of cryptocurrency market crash that occurred after TerraUSD's collapse in May 2022. The collapse of stablecoins associated with the Terra blockchain founded by Do Kwon caused a gap of up to 19 billion US dollars in market value in the stablecoin market. This kind of shock is very rare for the stablecoin market that maintains stable value. It even took more than two and a half years to fill this gap.

Recently, the value of stablecoins has soared rapidly following the sharp rise in the price of cryptocurrencies such as Bitcoin, mainly due to Donald Trump's big victory in the US presidential election, which triggered an upward frenzy in the cryptocurrency market. Trump was once skeptical about the cryptocurrency industry, but now he promises to implement more favorable policies to support the development of the cryptocurrency industry. Trump fully embraced digital assets during his campaign and said he wanted to make the US a “cryptocurrency capital” and a “Bitcoin superpower.”

According to CoinGecko's statistics, since the US election, the total value of the cryptocurrency market has grown by nearly a trillion US dollars, breaking through the 3.2 trillion dollar mark. In the global stock list, it is second only to Apple and Nvidia, which means that if you think of the cryptocurrency market as a stock, its market value is second only to Nvidia and Apple, far ahead of the world's top listed companies such as Amazon, Google, Meta, Tesla, and Saudi Aramco.

Bitcoin, the leader in the cryptocurrency market, once approached the epic mark of 0.1 million dollars last week, but then declined somewhat. Currently, the transaction price of Bitcoin is hovering around $93,500.

Bitcoin's market capitalization is currently hovering around $1.8 trillion, making it the largest cryptocurrency for a long time. Wall Street investment agency Ned Davis Research recently upgraded Bitcoin to “long trading only,” and believes that Bitcoin is expected to soar above 0.12 million dollars next spring. Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, believes that after Trump wins the US presidential election, the price of Bitcoin will reach 0.125 million dollars by the end of this year and 0.2 million dollars by the end of 2025.