The market capitalization of stablecoins reached $190 billion, marking a new all-time high (ATH).
This is a factor that favors bullish expectations for Bitcoin/” target=”_blank” rel=”noreferrer noopener”>bitcoin (BTC)which was close to exceeding the $100,000 line.
This is because, historically, there is a correlation between the market capitalization of the stablecoinsBTC and the cryptocurrencies.
Many investors often buy stablecoins so that your money is not exposed to market volatilitywhile they wait for the right moment to acquire BTC or other digital assets.
This means that there are greater liquidity available to enter the BTC market and the rest of the cryptocurrencies.
According to explorer data DefiLlama, stablecoin market cap up 46% from January 1 to November 27, 2024.
In the following graph of the analytical company CCDatathe dominance of each stablecoin is observed, with their names and colors indicated at the bottom. At the moment, USDTthe currency issued by the Tether company, has a market capitalization exceeded $133 billionrepresenting 70% of the total stablecoin market.
The chart also reflects how these assets They regained ground after the collapse of Terra USD (UST) in 2022.
Market capitalization of stablecoins from January 2021 to November 2024. Source: CCData.
As CriptoNoticias has reported, the stablecoin of Altcoin/” target=”_blank” rel=”noreferrer noopener”>Terraform Labs It maintained 1:1 parity with the US dollar through codes and algorithms that program and control the supply of the asset. UST was pegged to the value of LUNA, the network’s token, in a percentage that emulated the value of a dollar.
It is estimated that this fall left a gap of more than 20 billion in the stablecoin market.
Two years after that event, the situation is changing and stablecoins are at levels never seen before.
The recent increase coincides with the rebound registered in the digital asset market after the Donald Trump’s victory in the United States elections. It happens that the Republican leader expressed his support for the Cryptocurrency sector and promised to promote clear and friendly regulation to encourage the growth of the industry in that territory.
Bitcoin was close to exceeding $100,000
After talking about stablecoins and their relationship with BTC, it is worth briefly mentioning that the digital asset created by Satoshi Nakamoto was less than $500 away from breaking the $100,000 barrier on Friday, November 22.
Currently, its price is $95,210, as seen in the following chart. TradingView.
BTC quote from January 1 to November 28, 2024. Source: TradingView.
Despite the good performance of stablecoins, it happens that many investors and traders they opted for take profits around $100,000a factor that generated an upward momentum in its price.
As CriptoNoticias already reported, in the medium and long term, the expectations remain bullish for BTC.
The analysts of the consulting firm Bernstein they project that the price of the digital asset will reach $200,000 next year.
Marija Matic, finance specialist, highlights that bitcoin has a limited issuance of 21 million and, for that reason, “a significant portion of these coins have already been lost or remain inaccessible” and adds: “This shortage will continue to put upward pressure on the price of bitcoin, making it even more valuable to those who are lucky enough to possess it.”
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