All Major Stablecoins USDT, USDC, DAI Rise Again, Data Shows
Leading On-Chain Data Provider IntoTheBlock Shares Inspirational “Reversals” Stats For Cryptocurrency Bulls
Leading centralized and decentralized USD-pegged stablecoins are back on the rise after a record 10-month low. Typically, such action is a reliable bullish signal, according to the data.
After 10 painful months, stablecoins have started to gain ground, according to IntoTheBlock
According to a statement made by IntoTheBlock on its official Twitter account yesterday, January 27, 2023, the largest centralized stablecoins US Dollar Tether (USDT) and USD Coin (USDC) have started to increase their supplies with the leading decentralized stable asset Dai (DAI ).
After falling for 10 months, the market capitalization of #USDT, #USDC and #DAI shows a monthly increase.
👉Total amount of stablecoins impacts available liquidity in the crypto space
👉Stable market capitalization bottomed out a week after FTX and started to rise, indicating growing demand pic.twitter.com/d1QDAnNp6u— IntoTheBlock (@intotheblock) January 27, 2023
According to statistics shared by IntoTheBlock, the aggregate capitalization of the three assets began to grow shortly after the FTX/Alameda collapse. The SBF-backed entity drama ended the prolonged stablecoin segment “correction” that began with the Terra (LUNA) crash in May 2022.
As CoinGecko has shown, some smaller stablecoins have demonstrated even more impressive supply increases. For example, the circulation of True USD (TUSD) has increased by 25% since mid-December and is poised to enter 10-digit waters for the first time.
The seventh largest stablecoin Pax Dollar (USDP) saw its circulation increase by 5%, while Liquidity USD (LUSD) is one step away from the top 10 after a whopping 24% spike.
Fuel for a new rally?
Meanwhile, some other major stablecoins, including Binance USD (BUSD) and Gemini USD (GUSD), continue to reduce the supply of their available on-chain assets.
Generally, increases in stablecoin capitalization are a bullish signal for the capitalization of crypto markets: traders need more stablecoins to drive up Bitcoin (BTC) and altcoin prices.
As covered by U.Today previously, veteran analyst Charles Edwards pointed out that stablecoins are a form of “parked” money in the crypto industry.
As such, investors store them to use as “dry powder” once a Bitcoin (BTC) rally begins.
