The stablecoin market has reached a historic peak, exceeding $200 billion in total. Tether (USDT) and USD Coin (USDC) stand out as the leaders of this growth. Increasing liquidity is considered a bullish signal for Bitcoin and altcoin markets.
The stablecoin market broke a record for the first time with a total value exceeding $ 200 billion, especially with altcoins being an important part of it. According to the data shared by CryptoQuant, this increase may be the harbinger of a new wave of growth in the cryptocurrency market. Stablecoins pegged to the US dollar provide investors with protection from volatility risks while also offering liquidity. The stablecoin market has grown by exactly $ 37 billion since November 2023. Experts state that this increased liquidity will have a positive impact on Bitcoin reaching $ 104,595.3 and the appreciation of altcoins.
Tether’s USDT continues to lead the pack with a market cap of $139 billion. Since November, USDT’s value has increased by 15%. USDT’s 30-day liquidity change has returned to positive territory after a 2% decline at the beginning of the year. Circle’s USDC is in second place with a market cap of $52.5 billion. USDC has grown by 48% in the last six months, making it the fastest-rising stablecoin. USDC’s 30-day liquidity growth rate has reached 20%, its highest level in the last year.
The Relationship Between Bitcoin and Stablecoin Liquidity
The growth in stablecoin liquidity supports Bitcoin’s appreciation. In the first quarter of 2024, Bitcoin gained more than 50%. During this period, the total cryptocurrency market size increased from $2.2 trillion to $3.5 trillion. According to analysts, this growth in the stablecoin market increases investors’ “ready capital.” This capital creates buying opportunities during market declines and supports prices during uptrends. The increasing interest of institutional investors in stablecoins, in particular, is radically changing market dynamics.
