Markets
The return of the cryptocurrency market? Stablecoin market caps show 25% increase
Arman Shirinian
Stablecoins have seen a huge surge over the past week, suggesting a comeback in the crypto market
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The rebound we saw this week in cryptocurrency walk was validated by the growth in the market capitalization of stablecoins. The growth of stable assets is a crucial indicator reflecting capital inflows into the sector and can be used as an indicator of external investor confidence. feeling.
With cryptocurrency prices returning to an upward trend, a good sign that this upward trend could continue would be if stablecoin market caps resume the growth they experienced from mid-October to mid-April. During this period, the combined market capitalizations of USDT, USDC, DAI, BUSD, USDP, and TUSD climbed 25%. This increase supported the increase in trading volumes and indicated the desire of investors to keep their funds in cryptocurrencies instead of liquidating them.
However, over the past four weeks, this fiat crypto growth has stalled. The combined market capitalization of the six major stablecoins has remained relatively stable, showing neither significant growth nor decline. This stagnation could be a crucial indicator of market sentiment going forward.
Pay attention to the direction in which these walk the caps go from there, as they will likely help predict whether Bitcoin will push towards a new all-time high or fall below $60,000 again. If the market cap of stablecoins begins to rise again, it would suggest renewed investor confidence and an influx of capital into the crypto market.
On the contrary, if these market caps start to decline, it could indicate that investors are withdrawing from crypto and converting their holdings back to fiat currency, which is a negative sign for the market that will most likely lead to a substantial price correction and a return on investment. below the values we have seen recently.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.