Stablecoin supply surging past $150 billion brings more confusion to crypto market
According to data presented by CryptoRank, the total circulating supply on the market exceeded 150 billion dollars. Besides, over the last week since Aug. 5 trade, turnover of stablecoins increased by 46.73%. USDt has the greatest dominance among all products of the sector, holding 43.4% of the total supply, followed by USDC with 35%, then BUSD closes the top three with 11.6%.
Such an influx on the crypto market may turn out to be a surprise to both bulls — supporters of growth — and bears, who believe in the last dip of the crypto market as part of the not-yet-finished correction.
In fact, both may be right. On the one hand, the growth in the volume of circulating stablecoins is an increase in the supply of “gunpowder” for the crypto market to shoot up. On the other hand, an oversupply of stablecoins can exacerbate the already precarious position of the market, putting pressure on it.
Current state of crypto market
Noting the recent surge in the crypto market, coupled with an increase in the trading volumes of stablecoins, it is safe to assume that transactions have definitely started to occur more, and the market itself is quite active and full of money.
The close of the week of Aug. 14 at around $24,300 was the best in two months for Bitcoin. The opening of the new week started with strong volatility; thus, the price reached $25,000 again and immediately rolled back. Bitcoin is still in an uptrend and may continue to rise.