Stablecoin

Bitcoin

Optimism

Coin

<ul class="wp-block-list">
 <li>The combined value of the market for the largest USD-backed stablecoins has risen to $169B.</li>
 <li>Tether USD (USDT), is largely responsible for this expansion.</li>
</ul>
Record highs in stablecoin dynamics have increased market liquidity in the cryptocurrency sector. <a href="http://bitcoin.org" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) and the whole cryptocurrency sector might take heart from this, since past performance indicates that more liquidity usually leads to higher prices.
According to a new analysis by <a href="https://cryptoquant.com/" target="_blank" rel="noopener noreferrer nofollow">CryptoQuant</a>, the combined value of the market for the largest USD-backed stablecoins has risen to $169 billion, a 31% gain or $40 billion since the start of the year. The value of stablecoins, a measure of market liquidity, hit an all-time high in late September due to this rise.
<h3 class="wp-block-heading" id="h-favorable-correlation">Favorable Correlation</h3>
Greater stablecoin holdings on centralized exchanges are indicative of the growing liquidity. The stablecoin market leader, Tether USD (<a href="https://thenewscrypto.com/tether-celebrates-10th-anniversary-with-documentary-on-usdt-stablecoin/" target="_blank" rel="noopener noreferrer nofollow">USDT</a>), is largely responsible for this expansion. With a growth of 54% or $8 billion so far this year, the total USDT (ERC20) balances on centralized exchanges reached a new high of 22.7 billion this month.
An encouraging indicator, according to CryptoQuant, is that centralized exchanges already hold around $8.5 billion USDT issued on the Tron network. The market analytics platform has said that there is a favorable correlation between larger holdings of stablecoins on exchanges and higher Bitcoin and crypto prices.
There has been an unprecedented 146% growth, from $9.2 billion to $22.7 billion, in the total quantity of USDT (ERC20) on centralized exchanges since the beginning of this bull cycle in January 2023.
With USD Coin (<a href="https://thenewscrypto.com/native-usdc-on-sui-available-through-navi-protocol/" target="_blank" rel="noopener noreferrer nofollow">USDC</a>) coming in second with 21% of the stablecoin market, USDT has accumulated 71% of the market. USDC’s market value is $36 billion, reflecting a 44% rise, or $11 billion growth year-to-date, while USDT’s cap is approaching $120 billion, an increase of 30%, or $28 billion, since the beginning of 2024.&nbsp;
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Stablecoin Market Liquidity Surges, Boosting Crypto Sector Optimism

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