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OKX Ventures Report Highlights USDC and USDT Domination with 90%+ of Evolving Stablecoin Market

Published on Jan 03, 2024

Updated on Apr 25, 2024

Stablecoins poised to revolutionize global payments, emphasizing the need for enhanced integration

SINGAPORE, January 3, 2024 -- OKX Ventures, the investment arm of leading Web3 technology company OKX, today released a detailed report on the current state and future prospects of the stablecoin market. The report provides an in-depth analysis of the stablecoin sector's growth patterns, innovations, and future directions.Key highlights from the report include:

Market dominance: As of December 2023, USDT holds a staggering 70% share of the total stablecoin market capitalization, while USDC secures around 20%. This dominance reflects their robustness and investors' trust in these stablecoins amid the market's volatility.
Resilience and profitability: Despite the cryptocurrency market's downturn, USDT and USDC have shown exceptional resilience. Tether, for example, reported $1.48 billion in net profit in Q1 2023 and quarterly returns from Cash and Cash Equivalent investments close to US $1 billion in Q3 2023, highlighting the market's profitability.
Innovative growth: The report highlights the continuous innovation and expansion in the stablecoin sector, especially in the realms of USDT and USDC. These stablecoins have been instrumental in bridging the gap between traditional finance and blockchain technology.

The report also discusses the importance of stablecoins in the broader financial ecosystem, particularly in terms of cross-border payments and settlements. It emphasizes the need for the industry to focus on enhancing transparency, security, and integration with existing financial infrastructures.

OKX Ventures Partner Jeff Ren said: "As the cryptocurrency landscape continues to evolve, stablecoins prove to be not just fundamental to the functionality of digital economies but are also pivotal in harmonizing the realms of traditional finance and blockchain technology. Their robust growth and adaptation in the face of market challenges underscore their critical role in shaping a more interconnected and efficient global financial ecosystem."

The full report is available here.

Disclaimer

This article may cover content on products that are not available in your region. It is provided for general informational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed herein. It represents the personal views of the author(s) and it does not represent the views of OKX. It is not intended to provide advice of any kind, including but not limited to: (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets, or (iii) financial, accounting, legal, or tax advice. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. OKX Web3 features, including OKX Web3 Wallet and OKX NFT Marketplace, are subject to separate terms of service at www.okx.com.
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