The top five stablecoins in the market are Tether (USDT) with a market cap of approximately $164 billion, USDC at around $65 billion, Ethena USDe at $9.6 billion, Dai at $5.4 billion, and World Liberty Financial USD at $2.2 billion. A new stablecoin legislation, the Genius Act, passed this summer, may open the market to new entrants such as PayPal and Ripple, possibly impacting the rankings by next year.
Ethena USDe and Dai could experience a decline in their standings due to potential non-compliance with the Genius Act’s requirement for a strict 1-to-1 peg to the U.S. dollar. Additionally, major tech companies like Amazon, Walmart, and Meta Platforms are exploring the development of their own stablecoins, which could significantly alter the landscape in 2024.
The Motley Fool’s research indicates that 95% of the stablecoin market is dominated by just a few players, with Tether and USDC maintaining their lead. However, the entry of tech giants could shift market dynamics, leading to considerable changes in the rankings of stablecoin issuers by next year.
