- The stablecoin market cap added $9 billion to the crypto market.
- USDT’s market cap hit a fresh milestone.
The stablecoin market is showing signs of recovery, and its resurgence could play a vital role in the broader cryptocurrency market’s recovery.
Tether [USDT], a prominent stablecoin, has also observed a rise in its market capitalization. The increase marked a substantial contribution to the overall growth of the market.
Stablecoin market cap sees resurgence
As per IntoTheBlock’s data, the stablecoin market cap is on the path to recovery following a substantial decline in 2022 and 2023.
The chart showed a notable dip in market cap throughout 2022, persisting until around October 2023.
However, there has been a remarkable resurgence from October onwards, witnessing an increase of over $9 billion.
This upswing in market cap could signal an impending bull run, reminiscent of the trends observed in 2021. Also, USDT played a substantial role in further expanding the market cap.
USDT leads the stablecoin market cap recovery
With the overall rise in the stablecoin market cap, USDT has also experienced a notable increase in its market cap. As per IntoTheBlock’s data, the USDT market cap recently achieved a milestone.
It reached around $94 billion, marking its highest point on record. However, at the time of this writing, it had surpassed this milestone, rising to over $96 billion.
Additionally, an analysis of the supply of USDT on exchanges showed a consistent increase since November 2023. At the close of November 2023, the total Supply on Exchanges was around $9.4 billion.
It further rose to $11.56 billion by the end of the year.
At the time of this writing, the Supply on Exchanges was over $13 billion, indicating an addition of around $4 billion. This supply growth suggests increased activity and demand for USDT in the market.
Source: Santiment
Crypto market cap continues recovery
AMBCrypto’s analysis of the crypto market cap on CoinMarketCap showed a recovery trend that started around October 2023. The recovery followed a prolonged decline over the previous year.
The chart showed an uptrend that took the market cap from around $1 trillion to over $1.6 trillion.
Although there has been a slight decline at the time of this writing, the market cap remained within the $1.6 trillion range.
Source: CoinMarketCap
The notable influx of stablecoins into the market suggested a renewed readiness among traders to engage in investments. It also showed bullish sentiments.
This renewed interest and confidence in the market are essential factors contributing to the ongoing recovery of the market cap.