Markets
Return of the cryptocurrency market? Stablecoin market capitalizations show a 25% increase.
Arman Shirinyan
Stablecoins saw a huge surge last week, suggesting a return to the cryptocurrency market
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The rebound we witnessed this week on the cryptocurrency market it has been validated by the growth of stablecoin market capitalization. Stable asset growth is a crucial indicator that reflects inflows into the sector and can be used as an indicator of the level of investment of external investors. feeling.
With cryptocurrency prices on the rise again, a good sign that this upward trend could continue would be if stablecoin market caps resume the growth they saw from mid-October to mid-April. During that period, the combined market capitalizations of USDT, USDC, DAI, BUSD, USDP and TUSD increased by 25%. This increase supported the increase in trading volumes and indicated the willingness of investors to hold onto their funds cryptocurrencies instead of liquidating them.
However, over the past four weeks, this growth in fiat-pegged cryptocurrencies has stabilized. 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 they are facing market the limits start here, as they will likely help foreshadow whether Bitcoin will push to a new all-time high or fall below $60,000 again. If stablecoin market caps begin to rise again, it would suggest renewed confidence among investors and an influx of capital into the cryptocurrency market.
Conversely, if these market capitalizations begin to shrink, it could indicate that investors are withdrawing from cryptocurrencies and converting their holdings back into fiat, which is a negative signal for the market that will most likely lead to a substantial correction in prices. prices and to a return below the values we have seen recently.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.