Stablecoin Market Cap Hits Biggest Increase in 3 Months

• Market capitalization of the six largest stablecoins – USDT, USDC, DAI, BUSD, TUSD and USDP – has increased by over $1 billion over the weekend.
• The price of USDT returned to its $1 level after deviating from it last week.
• This increase in market cap comes after a gradual decline in the past 15 months and might signal an increased buying power.

Stablecoin Market Cap Marks Biggest Increase in 3 Months

The market capitalization of the six largest stablecoins – USDT, USDC, DAI, BUSD, TUSD and USDP – has experienced a spike of over $1 billion over the weekend. This marks the biggest surge in three months since shortly after Silicon Valley Bank’s crash.

USDT Deviation Sparks FUD

The leading stablecoin USDT slightly deviated from its $1 dollar parity last week which raised concerns among many in the crypto community. However, Tether CTO Paolo Ardoino explained this fluctuation with FUD that had been recently induced into the market and its price soon returned to its original $1 value.

Biggest Jump Since March 12th

Data presented by Santiment showed that such a jump in stablecoin market cap was last seen on March 12th this year. It was mainly fueled by TrueUSD (TUSD) whose market capitalization rose from approximately 2 billion to over 3 billion dollars within a few days. This significant increase may indicate an increased crypto buying power after a gradual decline throughout 15 months prior to this surge.

Silicon Valley Bank Collapse

In March earlier this year Silicon Valley Bank (SVB) collapsed followed by the disclosure that Circle (the entity behind USDC) had received funds from them just before their collapse causing further unease among investors at that time.

Increasing Crypto Buying Power?

This sudden jump in stablecoin’s market cap could be seen as an indication for increasing crypto buying power and as such should be taken into account when considering investments into cryptocurrencies and other assets backed by these coins.

Proudly powered by WordPress | Theme: Funky Blog by Crimson Themes.