The stablecoin sector within the cryptocurrency market is indicating a potential turnaround after a period of decline, with Tether’s USDT leading the way. Recent data from IntoTheBlock reveals that the market value of stablecoins, which had been on a downward trend through 2022 and into October 2023, is now experiencing a resurgence. This resurgence is marked by an over $9 billion increase in market value, hinting at a possible bullish phase akin to the boom seen in 2021. USDT, in particular, has been instrumental in this growth, achieving a new high in market value.
Stablecoins Gain Momentum
The data shows that USDT’s value soared to about $94 billion and has since exceeded this figure, reaching beyond $96 billion. Concurrently, the supply of USDT held on exchanges has been steadily climbing from November 2023, suggesting heightened market participation and interest. By late November, this supply had reached approximately $9.4 billion.
USDT Exchange Supply Indicates Demand Uptick
Currently, the amount of USDT on exchanges has surpassed $13 billion, indicating a significant inflow of roughly $4 billion, mirroring an uptick in activity and demand for USDT. Furthermore, the overall cryptocurrency market has followed a recovery trajectory starting around October 2023, staging a comeback from the preceding year’s decline. The total market value has risen from about $1 trillion to over $1.6 trillion, signaling increased investor engagement and positive market sentiment. This influx of stablecoins and the subsequent investor readiness to re-engage in the market are key to the continuing recovery in market valuations.