Stablecoins Surge- How Stablecoins Are Driving Crypto Liquidity and Growth
Stablecoins Surge– A recent report from CryptoQuant underscores the growing importance of stablecoins in the cryptocurrency market, suggesting that their expansion could be a major catalyst for the next rally in digital assets.
Stablecoin Liquidity Boost Post-Election
According to the CryptoQuant Weekly Crypto report, liquidity in the crypto market has seen significant growth since the U.S. Presidential election. The total value of stablecoins in circulation has surged, which analysts at CryptoQuant believe is directly linked to rising market liquidity.
“Historically, growing liquidity via stablecoins is associated with sustained gains in crypto markets,” CryptoQuant analysts explained.
Stablecoin Market Cap Surpasses $200 Billion
The report revealed that the total market capitalization of stablecoins has now exceeded $200 billion, reaching a new all-time high of $204 billion. This marks a notable $37 billion increase since November 4, 2024, following Donald Trump’s victory in the U.S. Presidential election. Tether’s USDT has been the primary driver behind this growth, though Circle’s USDC has also regained momentum. Additionally, USDT deposits on centralized exchanges have risen by 41%, from $30.5 billion in November to $43 billion today.
“Stablecoins are an important source of liquidity for trading on exchanges, and their expansion is generally associated with higher crypto prices,” the analysts noted.
Stablecoin Transfer Volume Surpasses Visa and Mastercard
In another report by CEX.io, it was highlighted that stablecoin transfer volume in 2024 outpaced the combined transaction volume of Visa and Mastercard by more than 7%. Total stablecoin transaction volume for the year reached an astounding $27.6 trillion, surpassing Visa and Mastercard’s combined volume of $23.8 trillion.
Moreover, the report noted that 70% of the stablecoin transaction volume in 2024 was driven by bots, with networks like Solana and Base seeing bot transactions account for up to 98% of the volume. The market for yield-bearing stablecoins has also surged, contributing to a 414% increase in the market cap of tokenized treasuries.
In conclusion, the rapid growth of stablecoins is signaling a new phase of liquidity and potential price increases in the cryptocurrency market, highlighting the growing influence of stablecoins in driving future market trends.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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