Block Data Dashboard analysts report that total supply of US dollar-pegged stablecoins reached $165 billion late last week, the token's highest level in more than two years. With the “synthetic dollar” Ethena, or stablecoin USDe, reaching a recent market value of over $2.4 billion, the growing number of stablecoins has been further expanded.

Dominant market share of Tether

Both the total number and variety of stablecoins pegged to the US dollar are growing, with USDT and USDC from Tether and Circle respectively having long held the majority of the market. According to statistics provided by DeFiLlama, USDT has a dominant market share of 70%, making it the clear leader.

In August 2023, Silicon Valley-based PayPal launched its own stablecoin together with Paxos. Etena also launched a new stablecoin just over two months ago. Later this year, Ripple will introduce a stablecoin pegged to the US dollar, as it announced earlier this month.

In making its announcement, Ripple predicted that the entire stablecoin market will grow exponentially over the next few years, reaching $2.8 trillion by 2028.