The total stablecoin supply has increased to around $170 billion, with USDT and USDC remaining dominant.
- Stablecoin supply grew in the last few days. USDT and USDC continued to dominate the market capitalization.
There has been a noticeable increase in the market capitalization and supply of stablecoins, particularly Tether [USDT] and USD Coin [USDC].
This growth has been significantly influenced by the recent approval of an Ethereum [ETH] ETF, which has played a critical role in driving these changes.
Key stablecoin metrics spike
AMBCrypto’s analysis of various stablecoin metrics has revealed significant trends, particularly in the stablecoin supply and market capitalization.
Starting around the 19th of July, the total supply of stablecoins began to trend upwards from approximately $168 billion.
This increase has continued, and as of the latest data, the total stablecoin supply has reached around $170 billion, marking one of its highest levels recently.
In addition to the increase in supply, the market capitalization of stablecoins has also experienced growth. Over the last 24 hours, the market cap has surged by over 3%.
At press time, the market cap was $2.5 trillion, based on data from IntoTheBlock.
An increase in stablecoin supply typically indicates a higher demand for these assets.
They are often used as safe havens or liquidity pools during market volatility or when traders prepare to move large sums within the cryptocurrency market.
USDT leads
Tether’s analysis from IntoTheBlock highlighted its continued dominance in the stablecoin market, with a market capitalization exceeding $114 billion.
Among the metrics analyzed, the volume of large transactions over the last 24 hours stood out significantly. This volume reached approximately $7.4 billion, marking a substantial increase of over 19% from the previous day.
Additionally, the number of daily active addresses for USDT has seen a notable increase, rising by over 9% in the last 24 hours to nearly 87,000 active addresses.
USDC follows closely behind
AMBCrypto’s market analysis for USD Coin showed its market capitalization was approximately $34 billion, making it the second-largest stablecoin after USDT.
Notably, USDC’s large transaction volume was around $7.9 billion, surpassing that of USDT. However, it has experienced a slight decline of about 1% in the last 24 hours.
Regarding network activity, the number of daily active addresses for USDC has substantially increased by over 11%. Yet, the total number remained lower at 35,000, compared to USDT.
The Ethereum effect
The recent approval of Ethereum ETFs marked a significant milestone for the cryptocurrency market, attracting a wave of institutional and traditional finance investors.
This influx has notably increased demand for stablecoins. The new set of investors typically utilize them as a bridge, particularly for purchasing ETH.
The phenomenon is not entirely new; a similar trend was observed following the approval of Bitcoin [BTC] ETFs earlier in the year, increasing demand for stablecoins.
With this development, the supply is expected to grow with the addition of more ETFs.
Take a Survey: Chance to Win $500 USDT
Next: Crypto-mining poses national security risks – Senator Warren
Source