🚀Stablecoins have become a strong "fuel" for the rebound of the crypto market, and the inflow of Tether (USDT) has increased dramatically during the bull market
In recent months, the cryptocurrency market has ushered in a strong bull market, and the massive inflow of Tether (USDT) stablecoins is undoubtedly a key factor driving this round of gains.
The recent performance of Bitcoin (BTC) has made the entire cryptocurrency market hot, and everyone is extremely bullish on the market. Against this backdrop, the sharp increase in the number of USDT inflows into exchanges cannot be a key factor in supporting the cryptocurrency bull market that has lasted for more than two months.
According to Santiment data, an average of $40 million USDT has flowed into exchanges every day over the past eight weeks. These inflows have not only driven the price surge, but also brought positive sentiment and liquidity to the market. As traders continue to allocate funds to cryptocurrencies, this stablecoin "dry powder" will continue to flow in in the final stages of 2024, and the overall market's upward momentum has further growth potential.
Despite the many participants in the stablecoin market, USDT has become the undisputed dominant force this year. A year ago, its supply was 90 billion — an impressive 50 billion increase in 12 months. USDT currently controls 66% of the $212 billion stablecoin market and will remain the top-ranked coin in terms of trading volume throughout 2024.
According to the report, stablecoins may grow from 1% to 10% of the US M2 money supply and foreign exchange trading. This is because the use of stablecoins has expanded beyond cryptocurrency trading to cross-border payments, payroll, trade settlements and remittances.
The report points out that stablecoins can solve the problem of inefficiency in the traditional financial system and provide faster and cheaper transactions. Among them, regulatory transparency is seen as a key factor in unlocking the full potential of stablecoins, especially the regulatory policies that may be introduced by the Trump administration in 2025.
In addition, the growing adoption of stablecoins in emerging markets such as Brazil and Nigeria is also expected to further drive market demand for more stablecoins.
In short, as the stablecoin market continues to develop and mature, it is expected to bring more innovation and changes to the global financial system in the future.
