Stablecoins Market Cap Up By 65% – Driving The Bull Rally Forward?
Stablecoins have gained significant traction, surpassing an all-time high market cap of $202 billion, with a 65% increase from a local bottom of $123 billion in October 2023. Despite this growth, their market dominance has declined by 7.91% compared to Bitcoin and Ethereum, indicating a shift towards riskier assets. Stablecoins serve as a crucial liquidity source for traders, especially during market uncertainty, allowing for quick reallocation into other cryptocurrencies. However, current stablecoin liquidity alone is insufficient to reignite the crypto bull run due to weak exchange inflows and low investor risk appetite. Tether's USDT leads the stablecoin market with a $139 billion cap, followed by Circle's USDC at $59 billion and Ethana's USDE at $5.7 billion. The total stablecoin market is valued at $221.86 billion, with daily trading volume down by 29.93% to $129.23 billion, representing 6.13% of the total crypto market.
