New money getting ready to buy the dip? The creations of Tether and Dai Wallet suggest this

The Tether network quietly hit a 5-month high in new wallet creation, surpassing 31.3 thousand addresses in a single day, and the highest since March 2024.

This increase has coincided with increased network growth on Multi Collateral Dai, indicating a broader trend among stablecoins.

According to Santiment’s analysis, 732 new DAI wallets were created, representing the fourth highest number since March 2024. Interestingly, the timing of these new wallets, emerging after a market recovery and without a decline significant Bitcoin or Ethereum wallet activity, suggests that fresh capital could be entering the crypto market.

This could signal renewed trader confidence, with investors positioning themselves for possible future gains.

“Given that these new wallets are being created after a market recovery, and with no noticeable decline in Bitcoin or Ethereum wallets, this may be a sign that new crypto money is being injected to boost trader confidence “.

CryptoPotato reported that the market capitalization of stablecoins, excluding algorithms, reached an all-time high this week. According to data compiled by DefiLlama, the number is currently close to $170 billion after nearly a year of uninterrupted growth.

Tether’s USDT tops the chart with over $118 billion in market cap, closely followed by Circle’s USDC at $34.43 billion. Meanwhile, DAI is the third largest stablecoin by market cap at $5.36 billion.

Meanwhile, PayPal’s US dollar-pegged stablecoin, PayPal USD, has quickly climbed the ladder to become the fifth largest stablecoin with over $1 billion in market capitalization.

The influx of new funds into the market has been timely as BTC and altcoins fell sharply over the past 24 hours to multi-week lows. This could allow investors to allocate stablecoins to bitcoins or other assets.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!