In a recent report by CCData, it was revealed that the stablecoin market has surged to its highest point in two years, reaching a market capitalization of $161 billion in May. This milestone follows eight consecutive months of growth, marking a significant uptick in market sentiment. Despite this rise, stablecoin dominance slightly decreased to 6.07%, down from 7% in March.

The report highlights the steady climb of Athena USDe's market cap, which increased by 11.6% to $2.61 billion, attributed to its expanded use as collateral for perpetual trading on Bybit. Tether, the leading stablecoin, reached an all-time high market cap of $111 billion, further solidifying its dominance in the stablecoin market.

Additionally, BlackRock's tokenized fund token BUIDL surged by 19.6% to $448 million, becoming the largest tokenized treasury fund, surpassing Franklin Templeton’s BENJI. Meanwhile, Circle’s USDC saw a sixth consecutive month of market capitalization increase, reaching $32.6 billion in May.

The rise in USDC's market capitalization aligns with increased demand, with USDC pairs recording an all-time high monthly trading volume in March. Notably, USDC's market share by trading volume rose for the second consecutive month to 8.27%.

Despite these positive indicators, stablecoin trading volumes on centralized exchanges saw a monthly low of $829 billion on May 23, with the report attributing this decline to historical trends following Bitcoin halving events.

Overall, the CCData report concludes that the stablecoin market has rebounded from losses incurred since the collapse of the Terra Luna ecosystem and the depegging of the algorithmic stablecoin TerraClassicUSD (USTC), marking a significant recovery in the market.