A common question: does the increase in stablecoin supply determine the direction of Bitcoin?
Over the past few weeks, Bitcoin's rise in charts has overshadowed other developments in the industry. From November 26th to press time, Bitcoin has grown by 123%, a timeline of particular importance that we will address later when we discuss the topic of stablecoins.
According to data from Coinmetrics,Stablecoin supply has been growing over the past few months, while the supply of stablecoins has further increased over the past week. With the emergence of USDC, this is a collective increase, TUSD is on the rise, and since the beginning of January 2021, USDC has increased by nearly 500 million US dollars.
Additionally, Tether’s share of supply has also begun to decline, with Tether owning the lowest share since January 2019, dropping to around 75% at press time. but,Stablecoins may be becoming a huge influence when it comes to market influence.
The latest data tracked by Santiment shows that the number of stablecoins returning to USDX continues to grow, with USDC, TUSD and SAI mirroring Bitcoin’s gains. The current significance of this development isStablecoins may influence BTC's current rally following the market drop.
Going back to the timeline, the value of Bitcoin has increased by 132% from November 26 to today. Meanwhile, Coingecko reported that the total stablecoin market capitalization has increased by $9.3 billion, from $24.3 billion to $33.7 billion at press time.
A simple explanation is,It represents retail transaction volume. Institutions have admitted over the past few weeks that they participated in Bitcoin’s massive rally, but they will not trade Bitcoin directly through USDT or use any other stable assets.
therefore,
therefore,Any short-term market breakout, whether bullish or bearish, is largely dependent on large inflows or outflows of retail moneyReplenish
Replenish: Stablecoins (Stablecoins) first originated in 2014, the USDT issued by Tether Limited established by Bitfinex. Stable currency is a kind of cryptocurrency with stable value. The background of stable currency is that the price of cryptocurrency fluctuates greatly. It is used as a medium of exchange to connect the world of digital currency and the world of legal currency.
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
