oops! It seems that the growth in market value of stablecoins is an interesting phenomenon in the cryptocurrency market! You see, in the past two months, the market value of stablecoins has grown at an astonishing 3.36%, an increase of approximately US$5.6 billion! What does this mean? Let’s analyze it in detail.
The first thing to talk about is the powerful stablecoin issuers, whose actions have extraordinary influence on the entire cryptocurrency market. Recently, we have noticed that Tether, the leader in the stablecoin market, has made a large-scale operation on the Ethereum network: it has issued an additional 1 billion $USDT, which has undoubtedly injected new vitality into the entire market! This news has attracted the attention of many media, and everyone is eager to understand how it will affect the future market trend.
Moreover, the additional USDT inventory of USD 1 billion issued by Tether on the Ethereum network is only an authorized transaction that has yet to be issued. In other words, this fund will serve as inventory for subsequent issuance requests and on-chain exchanges.
However, this does not prevent us from feeling this wonderful change in the cryptocurrency market from a macro level. After all, the influence of USDT, which accounts for more than 50% of the global stablecoin market value, cannot be ignored!
Let’s talk about the profound impact that the market value growth of stablecoins has on the cryptocurrency market.
According to data, the booming development of the stablecoin market has caused capital to begin to flow into the cryptocurrency market, bringing a huge supply of liquidity and undoubtedly promoting transaction activities on various blockchains.
The market value of stablecoins has undoubtedly become an important source of motivation for the start of the bull market!
According to data from Defilima, the current overall stablecoin market value has reached approximately US$125 billion, of which USDT accounts for 72.78%, almost reaching a peak of US$91.2 billion. Looking back last month, we noticed that USDT’s market capitalization growth rate was as high as 2.83%, which undoubtedly revealed its continued growth trend.
However, are there market risks hidden behind this exciting data? In fact, this just indicates that more and more investors are gradually paying attention to and recognizing the stablecoin market, which is also a key link in improving the stability of the digital currency market.
As the market value of stablecoins continues to rise, investors and users have developed stronger trust in the cooperation agreement and the public blockchain, and are willing to increase their locked positions on this basis, thereby promoting a sharp increase in the total locked positions. The more exciting news is that at the end of October this year, the supply and demand pattern of the stablecoin market reversed. After the market value growth in the first 2.5 months, it reached a huge increase of 3.36%. The overall stablecoin market value also slowed down as the gears turned. Slowly increase. You see, the growth in the market value of stablecoins can be said to be one of the important ballast stones to ensure the stability of total locked positions in DeFi cooperation agreements and public blockchains.
In the past, the DeFi field has always been market-oriented by stablecoins. As the inflow of stablecoins has grown steadily, the total locked positions of DeFi protocols and public blockchains such as Ethereum have also received effective support. Not only that, the growth of the stablecoin market has also resisted external instability factors to a certain extent, thus providing strong support for the stable operation of the cryptocurrency market. Of course, whether it is the growth of the market value of stablecoins, or its promotion of DeFi cooperation agreements and the stability of total locked positions in public blockchains, all of this is inseparable from the efforts and active promotion of major stablecoin issuers.
Looking to the future, the cryptocurrency market will continue to maintain this booming momentum, and the growth of the market value of stablecoins will also become one of the important driving forces for market growth.
In particular, those stablecoins with a relatively high market capitalization and strong strength, such as USDT, will continue to play a decisive role and become a key force in promoting the stable development of the market.
Overall, the growth in market value of stablecoins, both at the macro and micro levels, reflects their important role in promoting the development of the cryptocurrency market. We look forward to seeing that, with the active promotion of the stablecoin market, the cryptocurrency market can continue to develop healthily and bring broader development prospects to more investors and users.
