The recent market rebound has sparked concerns regarding a potential pullback. However, a fresh analysis offers a comforting perspective for those feeling uncertain.

Santiment's data highlights a growing number of non-empty stablecoin wallets, indicating heightened investor interest and involvement in stable assets.

Increasing Confidence in Stablecoins Amid Market Recovery

In 2024, non-empty USDC wallets saw a 13.9% increase, while USDT wallets experienced an even higher growth of 15.7%. This trend suggests a growing preference among investors to hold stablecoins, potentially stabilizing the market and lessening the impact of future retracements.

Santiment's data also reveals a significant adoption and expansion of stablecoin wallets. Tether (USDT) leads with a substantial 5.7 million non-empty wallets, underscoring its widespread use and popularity in the cryptocurrency ecosystem.

Following closely is Circle’s USDC, boasting 2.15 million non-empty wallets, signaling robust demand. Despite trailing behind Tether, the USDC wallet count remains noteworthy, indicating its increasing acceptance and adoption despite setbacks from the previous year.

The decentralized stablecoin DAI, issued by MakerDAO, has also garnered considerable attention with 503,180 non-empty wallets, highlighting growing interest in decentralized finance (DeFi) and the use of DAI as a stable asset within these protocols and applications.

Lastly, BUSD, Binance's stablecoin, counts 128,210 non-empty wallets. Although lower than the others, this figure still represents a significant user base for BUSD, even after Binance withdrew support for the token.

Stablecoin Market Growth in 2024

The stablecoin market cap has witnessed remarkable recovery and growth this year, reaching $161.4 billion, reflecting increased capital inflows into the market. The US spot Bitcoin ETFs sector notably contributed to this growth as institutional investors and major traditional finance entities bolstered their stablecoin holdings to capitalize on the ETF market.

According to Chainalysis' recent findings, stablecoin purchases in the US alone exceeded $30 billion in January 2024.

While the US and the EU remain influential in the market, emerging economies such as Thailand, Brazil, and notably Turkey stand out for their stablecoin purchases relative to their national GDP.