Stablecoin Market Cap Surpasses $200 Billion... Expanding in the Middle East

The total market capitalization of stablecoins has surpassed $200 billion. This is due to the rapid adoption of stablecoins, particularly in the Middle East.

According to the decentralized finance (DeFi) data platform DefiLlama, the total market cap of stablecoins recently exceeded $200 billion. Considering that the market cap was $140 billion at the end of 2023, it has increased by $60 billion in just one year. Stablecoins are virtual assets that minimize price volatility by pegging their value to fiat currencies like the dollar.

The adoption of stablecoins is also rapidly increasing. Bloomberg reported that fintech companies in the Middle East, such as Facet and Karim, are actively utilizing stablecoins. Botim, a tech company in the United Arab Emirates (UAE), is testing a stablecoin linked to the local currency Dirham with approval from the UAE Central Bank. Bloomberg stated, "Currently, the use of Tether (USDT) is concentrated in Europe, the Middle East, and Africa," adding, "In particular, stablecoins are becoming an increasingly significant presence in the Middle East."