Stablecoin Market Capitalization Nears $200 Billion — Bitcoin Price To Resume Rally?
The latest on-chain data shows that the valuation of the stablecoin market is approaching new milestones. Here’s how increased liquidity could impact Bitcoin and the cryptocurrency market as a whole.
Could an increase in stablecoin caps push Bitcoin prices to $100,000?
Owned by market intelligence platform IntoTheBlock disclose In its weekly report, the stablecoin market cap has experienced significant growth over the past month. According to the crypto firm, the stablecoin market capitalization this week topped $190 billion for the first time since late April 2022, when Bitcoin prices hovered near the $40,000 mark.
This impressive growth is powered by Bitcoin Valuation hits unprecedented six figures The total market capitalization surged to over $3.4 trillion. IntoTheBlock noted that stablecoin adoption has increased over the past few weeks as investors continue to move toward riskier assets such as cryptocurrencies.
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Specifically, this expansion primarily benefits Tether’s USDT, which continues to completely dominate the stablecoin market. Data from IntoTheBlock shows that USDT holds about 72% of the market share and has a market capitalization of more than $133 billion — reminiscent of the highs of the crypto market in 2021.
Interestingly, demand for the Tether stablecoin appears to be climbing, with over $3 billion worth of new USDT tokens being minted every week. Most notably, USDT has been minted over $13 billion since the beginning of November, with the majority of the stablecoin going to centralized exchanges.
This injection of new liquidity into centralized exchanges has already been reflected in the market, especially with the strong bullish momentum that has emerged over the past few weeks. Historically, Stablecoin inflows increase Access to exchanges is positively correlated with market prices, as they generally represent higher “buying power” for investors.
Therefore, the continuation of this event positive trend Could be the key to the dream of Bitcoin price breaking through $100,000. While the flagship cryptocurrency appears to have recovered from its recent slide below $93,000, it hasn’t quite shown enough strength to surpass the six-digit milestone.
At the time of writing, Bitcoin’s price continues to hover around the $96,500 mark, up more than 2% in the past 24 hours. The major cryptocurrency remains in the red on the weekly timeframe, down 3% over the past seven days, according to CoinGecko.
BTC market becomes stable and mature: IntoTheBlock
Also enter the block disclosed In its weekly report, the market environment for Bitcoin appears to be maturing, with volatility currently trending downward. High market volatility has been a long-standing point of criticism of Bitcoin as a store of value, according to the blockchain platform.
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However, IntoTheBlock noted that as retail and institutional adoption increases and volatility decreases, investors can expect Bitcoin’s price performance to be more stable. As a result, the premier cryptocurrency could become a more reliable store of value.
Featured image from iStock, chart from TradingView
