What You Need to Know:
- Bitcoin has recently achieved remarkable all-time highs, and stablecoins such as USDT and USDC are also experiencing record levels of supply.
- Since July, USDC’s market cap has risen by $1.3 billion, while USDT has increased by $1.4 billion, suggesting a notable influx of capital into the cryptocurrency market.
- Market analysts interpret this growth in stablecoins as a positive indicator of new investments entering the crypto economy, which often aligns with uptrends in Bitcoin prices.
As Bitcoin continues to rise, trading above all-time highs, the increase in stablecoin supply indicates a potentially sustained bullish trend in the market. The two leading stablecoins, Tether (USDT) and Circle (USDC), have both set new all-time high supplies this week, based on TradingView’s data. Since July began, USDC’s market cap has experienced an increase of $1.3 billion, hitting $62.8 billion, whereas USDT has climbed by $1.4 billion to nearly $160 billion.
USDT and USDC combined market capitalization (CoinDesk Data)
Looking further back, since April when markets hit a temporary low, the growth appears even more significant, with USDT expanding by approximately $15.2 billion and USDC gaining around $2.7 billion. Stablecoins serve as a digital asset class tethered to external currencies like the U.S. dollar, increasingly used for transactions while also being crucial for liquidity and trading activities on crypto exchanges.
Ultimately, market analysts often view the growth of stablecoins as a useful metric indicating the flow of fresh funds into the overall cryptocurrency sector.
“It’s very simple… Notice anything?”
— Caleb Franzen, Founder of Cubic Analytics
