Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Stablecoins Market Cap Up By 65% – Driving The Bull Rally Forward?

Source Newsbtc

Amidst a momentary pause in the current crypto bull run, stablecoins have emerged as a potential factor capable of driving the market forward. Market analyst Burak Kesmeci has provided much insight on this possibility while highlighting the impressive market gains of these stable digital assets in recent times.

Stablecoins Surpass All-Time High Market Cap Value Of $202 Billion

In a new post on X, Kesmeci discusses the potential of stablecoins providing a much-needed boost to the crypto market amidst much uncertainty as evidenced by consistent range-bound movement by major assets.

First, the crypto analyst notes that the stablecoin market cap has recorded a 65% gain from a local bottom of $123 billion in October 2023. At press time, these assets have seen their market shares exceed their previous all-time high of $202 billion recorded in August 2022.

However, despite this gain, more data from IntoTheBlock shows that the stablecoins crypto market dominance has declined by 7.91% in comparison to Bitcoin and Ethereum, indicating investors’ preference for these riskier, volatile assets. Generally, a rise in stablecoin supply still remains a bullish sign as these assets represent an important source of liquidity for market traders.

Due to their fixed price nature, traders often move their funds to stablecoins during periods of uncertainty which can easily be deployed into other cryptocurrencies later resulting in market rallies. However, Kesmsci notes that this current stablecoin liquidity surge alone would be insufficient to re-ignite the crypto bull run.

This notion is because compared to the previous 2020-2021 bull cycle, stablecoins exchange inflows are still considerably weak, indicating investors’ hesitation to engage the crypto market. Kesmeci explains that this low investor risk appetite can be ameliorated by a fall in interest rates and an increase in quantitative easing which will allow excess capital to flow into cryptocurrencies via the stablecoins.

Stablecoin Market Overview

In other news, Kesmeci further states Tether’s USDT remains the unchallenged leader of the stablecoin market with a market of $139 billion. This report proves impressive considering the recent FUD on USDT over reports of potential delisting due to MiCA regulations in Europe.

The Circle USDC ranks second with $59 billion in market cap after an impressive 10% gain in the last month. Meanwhile, Ethana’s USDE has climbed to third place with market shares valued at $5.7 billion ahead of the premier decentralized stablecoin DAI.

According to data from CoinMarketCap, the total stablecoin market is valued at $221.86 billion following a 0.28% gain in the past day. Meanwhile, daily trading volume is down by 29.93% and valued at $129.23 billion. At the time of writing, stablecoins represent 6.13% of the total crypto market.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

Sep 22, Tue

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anyway Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Author Irene Q.

Sep 23, Wed

Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Gold Price Forecast: XAU/USD drifts toward $4.300 with bears gaining traction Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.

Author FXStreet

Sep 23, Wed

Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.

US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth story US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Author Suzie

21 hours ago

US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Popular Symbols