Recent reports indicate a significant growth in stablecoin capitalization, which may serve as a precursor to increased liquidity in the cryptocurrency market.
Rise in Liquidity
According to a report from research platform CryptoQuant, the market capitalization of stablecoins has grown 17% year-to-date, reaching a record $228 billion. Analysts attribute this to the increasing use of stablecoins for payments and trading activity amidst an improved regulatory environment in the U.S.
Growth in Stablecoins
Tether's USDT and Circle's USD Coin (USDC) are key drivers of this growth. Since the beginning of the year, USDT has grown by 13% to $155 billion, adding $18 billion. Meanwhile, USDC has recovered from its March 2023 dip and increased by 39% to $61 billion.
Increase in Yield-Bearing Coins
CryptoQuant also noted that the volume of stablecoins on centralized exchanges has reached record levels, at approximately $50 billion. The value of yield-bearing stablecoins has risen by 28% to $6.9 billion. Analysts highlight that this growth was driven by tokens like sUSDe and sUSDs.
Thus, the rise of stablecoins and increasing liquidity in the market create favorable conditions for further developments in the cryptocurrency sector.
