The stablecoin market has achieved a new milestone, surpassing the $200 billion mark in market capitalization. This record high signals potential expansion in the broader cryptocurrency market, according to data from CryptoQuant.
Stablecoins are digital currencies designed to maintain a stable valuation by pegging their worth to another asset, commonly the U.S. dollar. They serve as a tool for investors to preserve their investment value when transitioning between different cryptographic assets. CryptoQuant reports that since early November, aligned with the aftermath of the U.S. election, the stablecoin market has expanded by $37 billion.
In their analysis, CryptoQuant suggests that "the next leg up for bitcoin and crypto prices could be around the corner as stablecoin’s liquidity impulse starts to expand again."
Among stablecoins, Tether's USDT maintains its leadership with a significant $139 billion market capitalization, reflecting a 15% growth since November. Closely following is Circle's USDC, which has seen a 48% surge, reaching $52.5 billion during the same timeframe.
USDT has experienced a slight positive change in its 30-day liquidity, improving from a 2% contraction earlier this year.
Conversely, USDC showcases a 20% increase in liquidity change over the same period, marking its fastest growth in the past year. On the broader crypto front, Bitcoin has risen by over 50%, and the entire crypto market has expanded from $2.2 trillion to $3.5 trillion.