On-chain data indicates that stablecoins market valuation is approaching a milestone. How could the increased liquidity impact Bitcoin, and the overall cryptocurrency market?
What is the impact of increasing Stablecoin caps on Bitcoin price?
IntoTheBlock, a platform for market intelligence has launched. revealed The weekly report noted the significant growth of the stablecoin capitalization in the month prior. The crypto company claims that the stablecoin’s market capitalization surpassed $190 billion for the first since April 20, 2022, when Bitcoin was trading around $40,000 per coin.
Bitcoin is the main reason for this impressive growth. unprecedented run to a six-figure valuation The total market cap has risen to $3.4 trillion. IntoTheBlock reported that the adoption of stablecoins has increased in recent weeks as investors have continued to move towards riskier assets such as cryptocurrencies.
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Specifically, the expansion was primarily in favor of Tether’s USDT. It continues to be the dominant stablecoin. Data from IntoTheBlock shows that USDT holds about 72% of the market share, with a market capitalization of over $133 billion — reminiscent of the crypto market highs of 2021.
The demand for Tether appears to be increasing, and a new USDT token is being issued every week worth over $3 billion. The most notable fact is that over $13 Billion USDT tokens have been issued since the beginning of November. These stablecoins mostly flow to central exchanges.
Markets have reacted positively to the fresh liquid injected into central exchanges. This is especially true with the recent strong bullish market momentum. Historically, increasing stablecoin inflows Market prices are positively related to the amount of money that is invested in exchanges, because they usually represent higher amounts. “buying power” For the Investors
This is why the continued use of this positive trend Bitcoin’s dream to reach $100,000 could hinge on this. Although the price of the cryptocurrency’s flagship has recovered somewhat from the recent dip below $93,000, the strength has not been sufficient for it to exceed the six-figure mark.
Bitcoin’s price is still hovering around $96,500 as of the time of writing. This represents a 2% rise in the past 24 hours. Data from CoinGecko shows that the price of Bitcoin is in red for the week, and has declined by 3% in the last seven days.
BTC Market Settles And matures: IntoTheBlock
IntoTheBlock is also disclosed According to its weekly market report, Bitcoin’s climate is improving as the volatility trend has been decreasing. The blockchain platform claims that the high market volatility is a criticism of BTC for a very long time.
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IntoTheBlock, however, noted that Bitcoin prices will become more stable as the retail and institution adoption increase and volatility declines. The leading cryptocurrency might become an even better store of wealth.
Featured image is from iStock and chart comes from TradingView
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Source: www.newsbtc.com
