The total liquidity of stablecoins has exceeded $220 billion, marking an all-time high, and the inflow of funds into the cryptocurrency market is rapidly expanding.
According to CryptoQuant's weekly report on the 3rd (local time), the liquidity of stablecoins, centered on USDT and USDC, broke through $220 billion, recording an all-time high. The report noted that the market capitalization of these two stablecoins increased by a total of $3.7 billion in the past week, showing the strongest weekly growth since February.
As of the 30th, USDT's market cap increased by $2.5 billion, and USDC by $1.2 billion. The cumulative increase over the past 30 days is $5.3 billion for USDT and $6 billion for USDC. This is noteworthy as both stablecoins are showing an upward trend above their 30-day moving averages. The increase in stablecoin supply is directly linked to the expansion of liquidity in the cryptocurrency market, and based on past cases, it has been considered an indicator closely associated with Bitcoin's bull market.
Market sentiment is also showing a clear recovery. The Bull Score Index jumped from 20 last week to 50 this week, suggesting that the market has entered a neutral phase in the short term. Although the indicator has not yet exceeded 60, which would indicate a sustained rise, there are analyses suggesting that the increase in liquidity is influencing the breakthrough of major resistance levels.
Bitcoin rebounded from its low of $74,000 on April 9th and surpassed $96,500 in early May, rising more than 25% over three weeks. Bitcoin supporter Robert Breedlove analyzed that the miner production cost indicator is again showing a bottom signal, which could be the early stage of a bull market.
Meanwhile, USDC recorded its highest exchange holdings in 14 months at $6.5 billion, showing that immediately available liquidity for trading and investment has been strengthened. In contrast, USDT's exchange holdings remain at $38 billion, 12% lower than its February 21st peak. This suggests the possibility of changing utilization and market preference between the two stablecoins.
The increase in stablecoin liquidity carries a meaning beyond mere numbers. It signifies the expansion of investment capacity across the market and can have a decisive impact on the price movements of Bitcoin and major altcoins in the future.
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