The total supply for U.S. dollar-pegged stablecoins appears to be trending towards its previous all-time high as the issuing of new tokens creates an increasingly more competitive space. 

Toward the end of last week, the total supply of USD-pegged stablecoins hit $165 billion, the highest token level in nearly two years, according to The Block Data Dashboard. The expanding supply of stablecoins has been buoyed by the rising market cap of Ethena’s “synthetic dollar," or USDe stablecoin, which in recent days has plateaued around $2.4 billion.

When the total stablecoin market hit $165 billion last Thursday, that constituted the highest mark for supply since late June 2022, also according to The Block Data Dashboard. The all-time record high for supply is over $180 billion.

Growing …