Stablecoin Supply Hits Record $176.2M Amid Market Recovery

The total supply of stablecoins reached an all-time high of approximately $176.2 billion.

According to data compiled by Token Terminal, the supply of stablecoins has steadily rebounded after a decline from mid-2022 to early 2023, likely reflecting broader market pullbacks during the crypto winter .

Since then, the aggregate offer has experienced steady growth.

Stablecoin market cap growth after Trump’s victory

While the global supply of stablecoins has reached new heights, the major assets have also seen significant growth in their market capitalization. In fact, data compiled by CoinMarketCap shows that Tether (USDT) saw a market capitalization increase of more than 7%, adding $8 billion since November 5, while Circle USDC grew by almost 6%, with nearly $2 billion in additions over the same period.

Stablecoins, usually pegged to the US dollar, are essential for liquidity in crypto markets as they act as a reserve to buy assets. USDT is most traded on offshore exchanges, while USDC is widely used on platforms like Coinbase and DeFi networks in the US.

The growth in stablecoin market capitalization reflects increased demand for liquidity and trading activity. This trend is often seen as a precursor to market expansion. Investors holding stablecoins are essentially keeping the “powder dry” ready for deployment, which is essentially a signal of confidence in the market.

USDT Netflow Exceeds 1.8 Million

In addition to the growing market cap, CryptoQuant’s latest analysis also revealed that the net flow of USDT to exchanges has reached a new record of over 1.8 billion. This increase in stable currency inflows indicates a considerable increase in purchasing power. This pattern suggests that investors are preparing for potential market moves.

“The substantial inflow of stablecoins into exchanges brings a large amount of purchasing power, which could drive demand for Bitcoin and other cryptocurrencies, especially if this capital is deployed strategically.”

During this time, the broader digital asset economy saw a dramatic increase in activity, with Bitcoin reaching all-time highs following Donald Trump’s election victory. The anticipation of a crypto-friendly administration fueled optimism, driving a wave of excitement and investment across the market.

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