Amidst a momentary pause in the current crypto bull run, stablecoins have emerged as a potential factor capable of driving the market forward. Market analyst Burak Kesmeci has provided much insight on this possibility while highlighting the impressive market gains of these stable digital assets in recent times. Related Reading: Bitcoin Faces Short-Term Uncertainty as Exchange Inflows Surge and Tether Liquidity Drops Stablecoins Surpass All-Time High Market Cap Value Of $202 Billion In a new post on X, Kesmeci discusses the potential of stablecoins providing a much-needed boost to the crypto market amidst much uncertainty as evidenced by consistent range-bound movement by major assets. First, the crypto analyst notes that the stablecoin market cap has recorded a 65% gain from a local bottom of $123 billion in October 2023. At press time, these assets have seen their market shares exceed their previous all-time high of $202 billion recorded in August 2022. However, despite this gain, more data from IntoTheBlock shows that the stablecoins crypto market dominance has declined by 7.91% in comparison to Bitcoin and Ethereum, indicating investors’ preference for these riskier, volatile assets. Generally, a rise in stablecoin supply still remains a bullish sign as these assets represent an important source of liquidity for market traders. Due to their fixed price nature, traders often move their funds to stablecoins during periods of uncertainty which can easily be deployed into other cryptocurrencies later resulting in market rallies. However, Kesmsci notes that this current stablecoin liquidity surge alone would be insufficient to re-ignite the crypto bull run. This notion is because compared to the previous 2020-2021 bull cycle, stablecoins exchange inflows are still considerably weak, indicating investors’ hesitation to engage the crypto market. Kesmeci explains that this low investor risk appetite can be ameliorated by a fall in interest rates and an increase in quantitative easing which will allow excess capital to flow into cryptocurrencies via the stablecoins. Related Reading: Whales Snap Up 30 Million XRP As Ripple Launches Its RLUSD Stablecoin Stablecoin Market Overview In other news, Kesmeci further states Tether’s USDT remains the unchallenged leader of the stablecoin market with a market of $139 billion. This report proves impressive considering the recent FUD on USDT over reports of potential delisting due to MiCA regulations in Europe. The Circle USDC ranks second with $59 billion in market cap after an impressive 10% gain in the last month. Meanwhile, Ethana’s USDE has climbed to third place with market shares valued at $5.7 billion ahead of the premier decentralized stablecoin DAI. According to data from CoinMarketCap, the total stablecoin market is valued at $221.86 billion following a 0.28% gain in the past day. Meanwhile, daily trading volume is down by 29.93% and valued at $129.23 billion. At the time of writing, stablecoins represent 6.13% of the total crypto market. Featured image from Swyftx Learn, chart from Tradingview
Bernardo Moura is looking to upend SWIFT’s dominance of the massive international payments industry, starting with Latin America.
Trump’s latest remarks after his inauguration on crypto regulations have created a euphoric moment for Bitcoin and other assets. Bitcoin came out of the choppy market with a smashing ATH of $109K. However, there is still fear and panic in the market as many think this new policy change may impact non-US entities. Raining serious …
In a recent development, Circle has announced its acquisition of Hashnote, a leading issuer of tokenized real-world assets. Hashnote is the creator of USYC, a tokenized money market fund with over $1.3 billion in assets. The acquisition was finalized during the World Economic Forum in Davos, Switzerland. This move places Circle at the forefront of …
Circle also said it will bring the $48 billion USDC stablecoin to the Canton Network and struck a partnership with crypto market maker Cumberland DRW to provide liquidity for USDC and USYC tokens.
Tether, the world’s largest stablecoin creator, has announced USDT0, marking a major step in its mission to revolutionize global finance. With over $140 billion in market value, Tether claims it has fulfilled crypto’s promise by banking the unbanked and building essential financial infrastructure. In a recent statement, Tether hinted at USDT0 as the next evolution …
“For the moment we need regulatory clarity and guidance,” says Tether CEO Paolo Ardoino.
The stablecoin market, which is dominated by Tether and Circle, is worth more than $214 billion.
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USDC’s massive growth in 2024 marked the stablecoin’s steady recovery following a 45% market cap drop associated with the Silicon Valley Bank collapse in 2023.
In a latest development, Tether and its subsidiaries are finalizing plans to relocate to El Salvador after securing a Digital Asset Service Provider (DASP) license and becoming a stablecoin issuer. This move positions Tether in one of the world’s most forward-thinking markets. This relocation will enable Tether to foster innovation, develop advanced solutions, and further …
Tether is moving its operations from the British Virgin Islands to El Salvador after being granted a Digital Asset Service Provider license.
Cryptocurrency is gaining a foothold in a Southeast Asian country after several local banks team up to launch a new stablecoin for its citizens to invest into digital assets. Four Philippine banks are preparing to introduce a multi-bank stablecoin to further allow Filipinos to become part of the cryptocurrency landscape, revolutionizing the country’s cross border […]
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Usual’s USD0++ staked stablecoin introduces dual exit mechanisms, prompting market volatility and significant community debate.
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Overcollateralized stablecoin issuers like Tether and Circle are collectively the world's 18th-largest buyers of US government debt.
Agora's AUSD is the latest entrant into the burgeoning stablecoin market.
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Crypto will reach a turning point when it becomes as useful for companies as the internet became in the 1990s, argues Animoca Brands' co-founder.
Tether USDt’s trading has wiped $100 billion since mid-December, but it “may be premature to turn bearish,” according to Matrixport.
The Frax community has approved a proposal to use BlackRock’s Institutional Digital Liquidity Fund (BUIDL) as collateral for its upcoming frxUSD stablecoin. Known as FIP-418, the proposal received unanimous approval during a six-day voting period. BlackRock’s BUIDL fund, which oversees over $648 million in assets, offers yield-generating opportunities for frxUSD holders. This collaboration is a …
The stablecoin is also more widely distributed across blockchain networks.
The turn of the year shines bright on Solana as the ecosystem received over $1B in stablecoin inflows in December. How and why did this happen? Easy – stablecoins exploded in popularity after Trump’s November victory, and Solana’s status as the home of the best meme coins formed a natural combo. $SOL also rebounded from […]
The network now holds approximately $5 billion worth of stablecoins, mostly made up of USDC.
Data shows the stablecoin reserve on Binance has shot up to a new record recently, a sign that could be bullish for Bitcoin and other coins. Stablecoin Exchange Reserve On Binance Has Seen Rapid Growth Recently As explained by an analyst in a CryptoQuant Quicktake post, the stablecoin Binance reserve has shot up recently. The […]
Stablecoin issuer Tether has moved over 8,400 Bitcoin to its reserve in its biggest move since March.
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Crypto execs are confident that it won’t be easy to enforce Brazil’s self-custodial stablecoin ban, with many examples proving that further decentralization is inevitable.