• Stablecoins surpassed a market cap of $200 billion.
  • USDT and USDC are dominating the stablecoins market.

The Stablecoin market cap leapfrogged the $211 billion mark amid USDC’s positive momentum. As per the recent report by Alphractal, a data analysis platform, the stablecoin market has witnessed tremendous growth since 2023 which was driven by USDT (Tether).

According to a report, the stablecoin market surged by 73% from $121.18 billion in August 2023 and hit an all-time high of $211 billion. Among all stablecoins, USDT shows a robust performance.

The data suggest that the USDT and USDC are the most demanded stablecoin in the crypto market. At the time of writing USDT holds a market cap of $139.45 billion and its ATH market cap of $140 billion was registered in December 2023.

Alphractal highlights that USDC got an advantage from the recent drawdown in altcoins where investors swap their crypto holdings into USDC. The USDC market dominance indicates a similar pattern from the 2021 bull cycle. If its metric rises continuously it will probably be a bearish signal.

Stablecoins are digital assets whose value is defined through another asset, typically the U.S. dollar. It provides a stable price to investors as they should maintain their pegged value while purchasing another asset.

President Donald Trump Boosts the Stablecoins Growth

As per the CryptoQuant data, the stablecoin market has grown by approximately $40 billion since Donald Trump’s victory in the US election. The growth in stablecoins indicated higher liquidity, which means that more capital is flowing into the crypto market.

Moreover, the rise in capital could lead to a higher demand for other crypto assets such as Bitcoin, and impact their price positively. The report indicates that the higher liquidity in stablecoins could signal a bull rally in the crypto market.

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