By: Isha Das
Recent trends in the crypto market suggest increased capital inflow, particularly evident in the stablecoin market. Breaking above the $52,000 level, Bitcoin wiped off previous losses, attributing to a significant milestone in an industry grappling with a bear market for the major part of the last year.
Notably, the aggregate market capitalisation of USDT, USDC, BUSD, and DAI, the four stablecoin giants, rose from $131.232 billion to $132.472 billion between Feb. 13 and Feb. 18. Stablecoins, serving as a liaison between fiat currencies and the crypto market, form a major part of crypto trading pairs, accounting for increased market liquidity.
Interestingly, the past 30 days saw a 3.475% surge in the supply of these four stablecoin majors, possibly indicating asset reallocation in anticipation of trading activity. A hike in the Stablecoin Supply Ratio (SSR) further supported this perspective, hinting at a higher potential buying power that could boost Bitcoin's price.
Meanwhile, in another development, Circle, the issuer of USDC Stablecoin, abandoned the TRON network, citing its 'risk management' framework among other reasons.