It has been reported the fact that the stablecoin market cap is flashing a really positive sign for the crypto liquidity. Check out more details about this achievement below.
Stablecoin market cap on the rise
According to analytics firm IntoTheBlock, the market capitalization of stablecoins is increasing, indicating a rise in the purchasing power of cryptocurrency market participants.
The value of all stablecoins is expected to go up in December for the second consecutive month, which is a positive sign for the liquidity of the cryptocurrency market.
IntoTheBlock also analyzes Bitcoin’s exchange netflows, which tracks the amount of Bitcoin (BTC) moving in and out of centralized crypto exchanges by subtracting the amount of withdrawals from deposits.
According to an analytics firm, Bitcoin has recorded the largest number of net inflows into exchanges in nine months, amounting to $860 million this week.
A 2021 study published by crypto analytics firm Santiment suggests that significant upticks in exchange inflows usually lead to an average price drop of 5% for crypto assets. However, IntoTheBlock notes that whales accumulated 22,000 BTC this week as Bitcoin dropped to $41,000.
Says the firm,
“This highlights their belief in Bitcoin’s long-term value despite market dips.”
Bitcoin is currently being traded at $42,248, which indicates a 1.70% decrease in the last 24 hours. According to IntoTheBlock, Ethereum’s (ETH) fees have remained high this week, which has had an impact on the supply of the second-largest cryptocurrency.
As per the latest statistics, Ethereum has burned over 35,000 ETH in the past seven days, and it continues to maintain its negative net issuance trend that started in early November.
Stablecoin industry in the news
According to Circle CEO, Jeremy Allaire, the stablecoin industry is expected to grow significantly in the upcoming years.
In a recent interview with CNBC Television, Allaire stated that the advanced capabilities of stablecoins would allow for a rapid expansion in the industry as the demand for online digital currencies continues to increase. Check out our previous article in order to learn more.
