The unabated expansion of stablecoin supply shows capital continues to flow into the crypto market, one observer noted.
On-chain data suggests the whale entities have bought up around 5% of the supply of the major stablecoins over the past three weeks. Whales Have Been Gobbling Up Stablecoin Supply Recently According to data from the on-chain analytics firm Santiment, whales have been rapidly accumulating the stablecoin supply recently. Whales here refer to investors holding […]
Tether (USDT) is now the seventh-largest Bitcoin holder globally, following its purchase of more than 8,000 BTC in the past day, according to Bitinfocharts data. On-chain data shows that the stablecoin issuer received approximately 8,889 BTC, valued at around $618 million, from a Bitfinex hot wallet on March 31. This purchase amplified Tether’s total Bitcoin holdings […]
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On-chain data shows the Bitcoin Exchange Stablecoins Ratio has plunged to its lowest since March 2023. Here’s what this could mean for BTC. Bitcoin Exchange Stablecoins Ratio Has Been Heading Down Recently As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Exchange Stablecoins Ratio has been declining recently. The “Exchange Stablecoins Ratio” […]
Stablecoins have recently achieved a significant milestone, surpassing $150 billion in market capitalization, with daily trading volume reaching $122 billion. This achievement marks a notable resurgence and growth in the stablecoin sector, with implications for the broader cryptocurrency ecosystem. Related Reading: BONK Bonked: Price Crashes 30% In 7 Days – More Pain Ahead? Market Dynamics And Growth Factors Stablecoins are digital assets designed to maintain a stable value by pegging their price to a reserve asset, such as the US dollar or other fiat currencies. They serve as a crucial bridge between traditional finance and the crypto space, offering stability and liquidity for users and investors. The recent surge in the stablecoin market can be attributed to several key factors. Firstly, the growing demand for stable assets in the volatile crypto market has driven increased adoption of stablecoins as a safe haven for traders and investors. Additionally, the rise of decentralized finance (DeFi) platforms has fueled the demand for stablecoins as a means of conducting transactions, providing liquidity, and earning yields. Source: CoinMarketCap Tether’s Dominance And Market Impact Tether (USDT), one of the most widely used stablecoins, has played a significant role in driving the growth of the stablecoin market. With a market capitalization exceeding $100 billion, Tether’s dominance underscores its position as a key player in the crypto space. Undoubtedly dominant in this sector, Tether commands a 70% market share. With a market capitalization of over $31 billion, USD Coin (USDC), the second largest stablecoin, grants Circle’s stablecoin a market share exceeding 20%. At the time of writing, DAI held a 3% market share and $4.7 billion, placing it in third position. Total crypto market cap at $2.4 trillion on the 24-hour chart: TradingView.com Tether’s market impact extends beyond its role as a stable asset, as it has faced scrutiny and regulatory challenges due to concerns about its reserve backing and transparency. Despite these challenges, Tether’s resilience and continued dominance highlight the strong demand for stablecoins and their utility in the digital economy. Crypto Enthusiasts Celebrate Stablecoins’ Rising Market Cap The crypto community is cheering the rising market cap of stablecoins, seeing it as a sign of coming prosperity. Total Stablecoin Mcap: Mar 21st. $147b. Feb 21st. $138b. Jan 21st. $133b. Dec 21st. $130b. Nov 21st. $127b. Oct 21st. $124b. it is impossible and stupid to not be bullish on DeFi whilst this chart is just up and to the right for the last 6 months. pic.twitter.com/qkcERkIXi8 — ZeroToTom (@zerototom) March 21, 2024 A growing market cap suggests more money is flowing into crypto, providing much-needed liquidity for trading and potentially pushing prices up. Additionally, stablecoins offer a safe haven during market dips, potentially encouraging more investors to enter the broader crypto market. This increased comfort and investment could fuel the entire market’s growth. Related Reading: Fantom (FTM) Bull Run: Can FTM Hit $2 After 20% Price Spike? Implications For The Crypto Ecosystem The surpassing of $150 billion in stablecoin market capitalization signifies a maturing and expanding crypto ecosystem. Stablecoins have become essential infrastructure in the digital economy, enabling seamless transactions, cross-border payments, and financial services innovation. Featured image from Xverse, chart from TradingView
Congressman Patrick McHenry and Senator Cynthia Lummis recently expressed optimism regarding the passage of critical crypto legislation before the upcoming election in November, according to media reports on March 20. Speaking at a Coinbase event, McHenry highlighted the positive shift in legislative prospects, particularly in the wake of leadership changes within the House Republicans. According […]
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Crypto exchange OKX is reportedly delisting Tether (USDT) pairs in the EU and will only support USDC and euro-based pairs, according to a message sent to a customer on March 18. The move comes days after the EU released draft technical standards related to stablecoins, which are set to come into effect from June. USDT […]
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Profits are redistributed to the community by rewarding token holders with yields.
The Intergovernmental Fintech Working Group is also considering the impact of tokenization on domestic markets.
UK Economic Secretary to the Treasury Bim Afolami has said the UK government was "pushing very hard" to bring legislation for stablecoins and staking services for crypto assets within six months, according to a Bloomberg report.
Cointelegraph Research dives into TRON’s emerging use cases and ecosystem in new research report.
Other stablecoins such as USD Coin may benefit from the coming regulatory crackdown and gain market share, the report said.
The USDT stablecoin issuer held over $5.4 billion in excess reserves as of 2023 year-end, according to its latest attestation.
Celo, which is in the midst of transforming into an Ethereum layer 2 network, increasingly positions itself as a blockchain for real-world assets.
Venture Smart Financial Holdings is also aiming for a spot-bitcoin ETF and is involved in the discussions about the stablecoin sandbox.
The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are also planning a sandbox to provide guidance on compliance.
Stablecoins are “something we're putting strong resources towards, because we know it's a growing area both in traditional and new financial areas,” a leading S&P analyst said.
The Basel Committee for Banking Supervision wants to tighten requirements that allow stablecoins to qualify as less risky than unbacked cryptocurrencies like bitcoin.
The listing marks the first time a euro stablecoin issued by a fully regulated bank is available on a cryptocurrency exchange.
EURCV isn't the first Euro stablecoin, but it has the institutional backing of Societe Generale, a major European financial institution.
The payments giant debuted its own Ethereum-based U.S. dollar stablecoin this year, offering serious competition to existing market leaders such as Tether's USDT and Circle's USDC.