USDt explained for beginners: Learn how Tether works, why it’s popular and how it stacks up against other stablecoins.
In a latest development, FOX Business journalist Eleanor Terrett revealed in an X post that Senator Bill Hagerty is set to introduce legislation to establish a regulatory framework for stablecoins, representing the latest effort to promote crypto-friendly policies for an industry prioritized by Donald Trump. The bill is called the GENIUS (Guiding and Establishing National …
Stablecoins, often taking the backseat from Bitcoin and other top cryptocurrencies, are now in the spotlight. According to on-chain data, the stablecoins market has surged to over $200 billion, with Tether’s USDT and USDC as the main growth drivers. Related Reading: Stablecoins Hit $200 Billion—Does This Signal A Massive Crypto Rally? Based on CryptoQuant’s data, the stablecoins market increased by $37 billion since the first week of November last year, when Donald Trump won his second presidency. The same CryptoQuant report shared that the stablecoin’s performance may spill over to Bitcoin and other cryptos. Alphractal shared the same data; this time, it highlights the growing role of USDC in the stablecoins segment. According to Alphractal, USDC is eating up the share of USDT, and other altcoins are fueling its rise in the industry. USDC Nearing Its Key Resistance Level: Alphractal According to Alphractal, the stablecoins market’s steady but steady expansion, with Tether at the top, is evidence of its tenacity. According to recent market data, altcoin trades are helping USDC gain traction. The research claims that altcoin sales frequently move to USDC, boosting the market’s supply. ???? Stablecoin Market Cap Surpasses $211B – USDC Gains Momentum! Since 2023, the stablecoin market has grown significantly, mainly driven by USDT (Tether). However, recently, USDC has been gaining an edge over other stablecoins. This trend is occurring due to the recent drop in… pic.twitter.com/IRKrQErmCE — Alphractal (@Alphractal) January 31, 2025 However, this coin is nearing its resistance level, and its replicating price movements were last seen in 2021. Unlike its rival, Tether’s USDT, USDC enjoys strong institutional backing and regulatory clarity. These are the primary reasons many investors and institutions prefer USDC over Tether’s USDT. What About The Other Stablecoins? USDC and USDT are still the most popular stablecoins, but smaller stablecoins have not been growing since 2023. The total market value of these alternative stablecoins has stayed mostly the same, indicating there has been little new development or growth beyond the two main coins. The other coins’ perceived poor adoption and popularity raise questions about the prospects of stablecoins. Like USDT, many of these “smaller stablecoin projects” face liquidity issues, lack of institutional support, and regulatory uncertainty. While it’s good that the overall stablecoin market cap is growing, it’s also alarming that it’s only dominated by two coins: USDT and USDC. Related Reading: XRP Posts Highest Monthly Close Ever—What’s Next? Bullish Or Bearish: USDC’s Short-Term Outlook USDC’s current price action is nearing a critical resistance level, similar to its all-time high in 2021. If it continues to dominate and move past this resistance, this can translate to higher risk aversion, with capital moving away from meme or altcoins. In short, it’s a bearish signal since people are looking for stability. It’s also interesting to note that USDC rose when altcoins crashed in price. This indicates that many investors are securing their gains. Featured image from InfoMoney, chart from TradingView
Data shows the stablecoins USDT and USDC have been seeing capital inflows recently, something that could turn out to be bullish for Bitcoin. Top 2 Stablecoins Have Seen Their Market Caps Grow Recently In a new post on X, the on-chain analytics firm Santiment has discussed about the latest trend in the market caps of the top two stablecoins: USDT and USDC. Below is the chart shared by the analytics firm, that shows the data for the 30-day change in the market caps of the two cryptocurrencies. As is visible in the graph, the 30-day percentage change in the market cap of USDC has spiked to sharp positive levels recently, implying that the stablecoin has been growing at a rapid rate. Unlike USDC, which has seen sustainable growth for the last few months, USDT kicked off the year 2025 with its 30-day market cap change dipping into the negative territory. Since bottoming at around -2% earlier in the month, though, momentum has returned for the asset as the indicator has just turned back green. Related Reading: Bitcoin HODLer Selloff Extends To 1.1 Million BTC As Profit-Taking Continues This means that at present, both of the two stablecoin giants are enjoying an increase in their market caps. Historically, growth in these fiat-tied tokens is something that has been bullish for Bitcoin and other volatile cryptocurrencies. The reason behind this is the fact that investors who store their capital in the form of stablecoins generally plan to invest into the volatile side of the market eventually. When they buy BTC with their stables, its price naturally receives a positive effect. The most bullish scenario for the sector occurs when both Bitcoin and the stablecoins witness a rise in their market caps. Such a setup implies both sides of the market are getting net capital inflows. When only one rises while the other goes down, it means capital is merely seeing a rotation between the two. The recent inflows into USDT and USDC have come while BTC has been consolidating sideways. This suggests the capital entering into the stables is fresh, as BTC would have gone down if it was otherwise. At the same time, BTC itself isn’t seeing any direct inflows, hence the flat price action. Related Reading: Ethereum MVRV Forms Signal That Last Led To 40% Price Crash Usually, stablecoin holders deposit to centralized exchanges when they want to purchase the volatile cryptocurrencies. Thus, the number of stable deposits into these platforms can tell us about whether large-scaling buying of this type is happening or not. An analyst has shared the data for the metric in a CryptoQuant Quicktake post. From the above chart, it’s apparent that the indicator is following a flat trajectory right now. An increase in it, like the one witnessed earlier, may provide fuel for a further rally for Bitcoin. Bitcoin Price At the time of writing, Bitcoin is floating around $104,800, down 1% in the last week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
This coincided with the launch of Donald Trump's memecoin $TRUMP which caused a wave of inflows to the network
In a latest development, Circle announced that its native stablecoin USDC has gone live on the Layer-1 Aptos mainnet and accessible to all developers and users. With the new development, developers and users would not need bridging when performing a transaction. This integration makes it easy for financial institutions to access USDC liquidity and benefit …
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.
The world’s largest illicit online marketplace keeps growing following the launch of its own crypto products, according to Elliptic.
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 […]
An unexpected change in the redemption mechanism of the protocol's yield-generating token caught investors off-guard, throwing the DeFi community into disarray.
Usual’s USD0++ staked stablecoin introduces dual exit mechanisms, prompting market volatility and significant community debate.
Stablecoins and liquid staking tokens are continuing to drive TVL growth across DeFi.
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.
Do Kwon, the former CEO of Terraform Labs, is currently under intensive investigation by US officials who allege that he committed fraud that affected over a million people worldwide. During Kwon’s trial in a New York court, prosecutors provided a detailed account of the far-reaching consequences of his alleged financial misconduct. Related Reading: Crypto Survival […]
Ripple’s RLUSD stablecoin gets a boost as Chainlink’s price feeds enable secure, real-time DeFi transactions on Ethereum and the XRP Ledger.
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.