Cumulative supply of USDT, USDC, and DAI increased to $141,42 billion for the first time since May 2022

The growth of the indicator continues despite the decline in the BTC exchange rate after reaching its all-time high on March 14

03.04.2024 - 13:35

2 min

What’s new? Since the bitcoin exchange rate hit an all-time high of $73 500 on March 14, the cumulative supply of the three largest stablecoins by capitalization, USDT, USDC, and DAI, has grown by 2,1% to reach $141,42 billion, the highest since May 2022. These assets collectively hold more than 90% of the stablecoin market.

Material by CoinDesk

What else is known? Reflexivity Research calls the continued increase in the supply of stablecoins a positive sign for the crypto market, as it reflects the inflow of new capital. In other words, demand for bitcoin may be high and the broader uptrend will soon resume.

Stablecoins have become the primary mechanism for buying cryptocurrencies on the spot market and trading derivatives. Since late 2021, traders have increasingly favored cryptocurrency futures with margin and settlement in stablecoins over tokens.

Stablecoin margin futures offer a linear payout where the value of the collateral remains stable regardless of market volatility, and traders do not need to look for ways to hedge it constantly.

Threshold Network launches the thUSD stablecoin backed by BTC and ETH

The one-time fee for issuing the asset will be 0,5%

Earlier, Tether, the USDT issuer, announced that it had successfully passed the System and Organization Controls 2 (SOC) audit, the highest level of security compliance developed by the American Institute of Certified Public Accountants (AICPA). The day before, TRM Labs said that USDT was the most commonly used stablecoin in criminal activity in 2023.

Author: