$USDC The total market capitalization of stablecoins has increased significantly, recently surpassing US$ 200 billion, according to data collected by DefiLlama.

The demand for stablecoins has steadily risen over the past year as the cryptocurrency market recovered from recent lows, with a significant uptick following Donald Trump's victory in the U.S. elections.

Stablecoins serve as a bridge between cryptocurrencies and fiat currency, and are enjoying growing popularity in developing countries. In countries with unstable currencies and less developed banking systems, stablecoins can serve as a safe asset and an accessible, low-cost payment method. Sometimes, stablecoins can also serve as a place for participants in the digital asset market to park excess funds between investments.

This trend becomes clear when we consider the relative market capitalizations of the two largest stablecoins (USDT and USDC) compared to the two largest public cryptocurrencies (BTC and ETH). As the broader cryptocurrency asset market declines, the share of stablecoins in the market relative to cryptocurrencies in general tends to increase significantly.