The recent crypto market liquidation and spot-selling events have resulted in a return of liquidity to crypto markets. Inflows of the stablecoin USDC have played a significant role in propping up the market, with faster inflows compared to other stablecoins. USDC has seen significant growth in the past 30 days, adding over 9.1 million tokens, with over 6 billion tokens on the Solana blockchain. Tether (USDT) has also seen inflows, albeit at a slower pace, and still remains more active than USDC with daily trading volumes above $130 billion. The inflows of stablecoins are seen as a bullish indicator and have been particularly notable after market dips. While Bitcoin (BTC) and Ethereum (ETH) flowed out of exchanges, stablecoins were held in exchange wallets as a tool to react quickly to market conditions. Stablecoin supply is growing due to demand for passive income, as they can be used in decentralized products for collateral or in liquidity pools. Despite skepticism about potential government and regulatory control, stablecoin issuers are striving to become compliant and retain their business models. The total supply of stablecoins has now exceeded 215.4 billion tokens, marking a new record and representing just 1% of the supply of the US dollar. Ethereum remains the busiest hub for Tether, while Solana is quickly becoming the leading carrier for USDC.



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