Stablecoins See Major Growth as Crypto Market Rebounds
Login

Stablecoins See Major Growth as Crypto Market Rebounds

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


In a significant development for the cryptocurrency world, the two largest stablecoins have seen a huge increase in supply over the past week. This growth comes as the broader crypto market bounces back from a recent dip.

Tether (USDT) and USD Coin (USDC), the top two stablecoins by market size, have added nearly $3 billion to their combined supply since Monday. This surge suggests that investors are eager to buy cryptocurrencies at lower prices following the market’s recent downturn.

Stablecoins are digital tokens designed to maintain a steady value, usually tied to a real-world currency like the US dollar. They act as a bridge between traditional money and the crypto market, making it easier for people to trade and invest in digital assets.

Tether, the biggest stablecoin, has minted $1.3 billion worth of new USDT since August 5. This push has driven Tether’s total market value to a record high of over $115 billion.

Meanwhile, USDC has grown by about $1.6 billion, reaching $34.5 billion—its highest level since March 2023.

Much of this new stablecoin money is flowing into cryptocurrency exchanges. Binance, the world’s largest crypto exchange, received over $1.5 billion in USDT and $820 million in USDC deposits in just four days after the market’s Monday slump.

Inflows into Stablecoins Is a Good Sign

Experts see this influx of stablecoins as a positive sign for the crypto market. When more stablecoins enter the system, it often means more people are getting ready to buy cryptocurrencies. This can lead to price increases for popular coins like Bitcoin and Ethereum.

The growth in stablecoins isn’t limited to just one type of investor. According to digital asset broker FalconX, various groups, including hedge funds, venture funds, and everyday retail investors, are all buying in.

This stablecoin boom comes at an interesting time for the crypto market. Bitcoin, the most well-known cryptocurrency, has recovered significantly since hitting a five-month low of about $49,250 on August 5. As of the time of writing, Bitcoin is trading above $60,000, marking a strong comeback.

The surge in stablecoin supply and the rebound in cryptocurrency prices suggest that investor confidence in the digital asset market remains strong, despite recent volatility.

Make money without lifting your fingers: Start using a world-class auto trading solution

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News