Stablecoins USDT, USDC, and DAI Are Surgeing Once More

Key Points:

• Top-tier centralized and decentralized stablecoins linked to the U.S. Dollar are once again climbing. According to research, such behavior is typically a trustworthy bullish signal.
• The lengthy “correction” of the stablecoin segment that began with the Terra (LUNA) crash in May 2022 was put to a stop by the drama of SBF-backed businesses.
• True USD’s (TUSD) circulation has increased 25% since the middle of December and is about to make its first foray into the 10-digit waters.

After a record-breaking 10-month fall, top-tier centralized and decentralized stablecoins linked to the US Dollar are once again climbing. According to research, such behavior is typically a trustworthy bullish signal.

According to a statement released by IntoTheBlock on its official Twitter account yesterday, the two largest centralized stablecoins, U.S. Dollar Tether (USDT) and USD Coin (USDC), together with the most important decentralized stable asset, Dai, began growing their supplies on January 27, 2023. (DAI).

After declining for 10 months, the market cap of #USDT, #USDC and #DAI shows a monthly increase.
The total amount of stablecoins impacts liquidity available in the crypto space
Stables market cap bottomed a week after FTX and began increasing, pointing to increasing demand pic.twitter.com/d1QDAnNp6u

— IntoTheBlock (@intotheblock) January 27, 2023

Statistics provided by IntoTheBlock show that soon after the FTX/Alameda crash, the combined capitalization of the three assets began to increase. The lengthy “correction” of the stablecoin segment that began with the Terra (LUNA) crash in May 2022 was put to a stop by the drama of SBF-backed businesses.

Some smaller stablecoins showed even more striking supply increases

For instance, True USD’s (TUSD) circulation has increased 25% since the middle of December and is about to make its first foray into the 10-digit waters. Pax Dollar (USDP), the seventh-largest stablecoin, has had a 5% growth in circulation, while Liquidity USD (LUSD), which saw a staggering 24% gain, is just outside the top 10.

Other significant stablecoins, like as Gemini USD (GUSD) and Binance USD (BUSD), are still reducing the amount of their assets that are available on-chain. Increases in stablecoin capitalization are often a positive indication for the capitalization of the cryptocurrency markets since traders need more stablecoins to drive up the price of Bitcoin (BTC) and other cryptocurrencies. Charles Edwards, a seasoned researcher, emphasized that stablecoins are a type of money “parked” within the cryptocurrency sector.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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