Stablecoin Market Cap Nears $200 Billion – Bitcoin Price Will Resume Rally?

The newest on-chain information reveals that the stablecoin market is approaching a brand new milestone by way of valuation. Here is how rising liquidity may impression Bitcoin and the general cryptocurrency market.

Can the Rising Stablecoin Restrict Push Bitcoin Worth to $100,000?

Market data platform IntoTheBlock has revealed in its weekly report that stablecoin market capitalization has seen exceptional development over the previous month. In line with the crypto firm, the stablecoin market capitalization rose this week for the primary time since late April 2022, when Bitcoin costs hovered round $40,000.

This spectacular development comes on the again of Bitcoin’s unprecedented run to a six-figure valuation and the explosion of its complete market capitalization to over $3.4 trillion. IntoTheBlock famous that stablecoins have seen higher adoption in current weeks as buyers proceed to flock to riskier property like cryptocurrencies.

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In concrete phrases, this enlargement primarily benefited Tether’s USDT, which nonetheless fully dominates the stablecoin market. Knowledge from IntoTheBlock reveals that USDT holds roughly 72% of the market share, with a market cap of over $133 billion – paying homage to the crypto market highs of 2021.

Apparently, demand for the Tether stablecoin seems to be on the rise, with over $3 billion of latest USDT tokens being issued each week. Notably, greater than $13 billion USDT has been minted since early November, with the stablecoins largely flowing to centralized exchanges.

This injection of latest liquidity into the centralized exchanges is being mirrored available in the market, particularly with the robust bullish momentum of current weeks. Traditionally, the rising influx of stablecoins on exchanges has been positively correlated with market costs, as they typically characterize larger “buying energy” for buyers.

As such, the continuation of this constructive development could possibly be essential to the dream of Bitcoin worth crossing $100,000. Whereas the flagship cryptocurrency has seemingly recovered from its current droop under the $93,000 degree, it hasn’t precisely proven sufficient energy to surpass the six-figure mark.

On the time of writing, Bitcoin’s worth continues to hover round $96,500, reflecting a rise of greater than 2% prior to now 24 hours. In line with information from CoinGecko, the main cryptocurrency continues to be within the purple on the weekly timeframe, down 3% over the previous seven days.

BTC market turns into steady and mature: IntoTheBlock

Additionally IntoTheBlock revealed in its weekly report that Bitcoin’s market surroundings seems to be maturing as volatility is at the moment trending downward. In line with the blockchain platform, the excessive volatility of the market has lengthy been a essential level for BTC as a retailer of worth.

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Nevertheless, IntoTheBlock famous that buyers can anticipate Bitcoin’s worth efficiency to be extra steady as retail and institutional adoption will increase and volatility decreases. Subsequently, the main cryptocurrency may grow to be an much more dependable retailer of worth.

Featured picture from iStock, chart from TradingView