The market capitalization of stablecoins reached $190 billion, marking a brand new all-time high (ATH).
This is an element that favors bullish expectations for bitcoin (BTC), which was near exceeding the $100,000 line.
This is as a result of, traditionally, there’s a correlation between the market capitalization of stablecoins, BTC and cryptocurrencies.
Many buyers typically purchase stablecoins in order that your cash shouldn’t be uncovered to market volatilitywhereas they watch for the appropriate second to accumulate BTC or different digital belongings.
This implies that there are larger liquidity accessible to enter the BTC market and the remainder of the cryptocurrencies.
According to information from the DefiLlama explorer, stablecoin market cap up 46% from January 1 to November 27, 2024.
In the next graph from the analytical firm CCData, you may see the dominance of every stablecoin, with their names and colours indicated on the backside. Currently, USDT, the forex issued by the Tether firm, has a market capitalization exceeded $133 billionrepresenting 70% of the whole stablecoin market.
The chart additionally displays how these belongings They regained floor after the collapse of Terra USD (UST) in 2022.
As CriptoNoticias has reported, the Terraform Labs stablecoin maintained 1:1 parity with the US greenback via codes and algorithms that program and management the availability of the asset. UST was pegged to the value of LUNA, the community’s token, in a proportion that emulated the value of a greenback.
It is estimated that this fall left a spot of greater than 20 billion in the stablecoin market.
Two years after that occasion, the scenario is altering and stablecoins are at ranges by no means seen earlier than.
The latest enhance coincides with the rebound registered in the digital asset market after Donald Trump’s victory in the United States elections. It occurs that the Republican chief expressed his help for the cryptocurrency sector and promised to advertise clear and pleasant regulation to encourage the expansion of the trade in that territory.
Bitcoin was near exceeding $100,000
After speaking about stablecoins and their relationship with BTC, it’s price briefly mentioning that the digital asset created by Satoshi Nakamoto was lower than $500 away from breaking the $100,000 barrier on Friday, November 22.
Currently, its value is $95,210, as seen in the TradingView chart under.
Despite the great efficiency of stablecoins, it occurs that many buyers and merchants They selected to take income round $100,000an element that generated an upward momentum in its value.
As CriptoNoticias already reported, in the medium and long run, expectations proceed to be bullish for BTC.
Analysts on the consulting agency Bernstein venture that the worth of the digital asset will attain $200,000 subsequent 12 months.
Marija Matic, a finance specialist, highlights that bitcoin has a restricted issuance of 21 million and, for that cause, “a significant part of these coins has already been lost or remains inaccessible” and provides: “This scarcity will continue to exert upward pressure on the price of bitcoin, making it even more valuable for those lucky enough to own it.”
