Recent data from Glassnode reveals a notable surge in stablecoins like USDT, USDC, BUSD, and DAI, indicating fresh money flowing into the crypto market.
This surge is the most significant increase since the Terra crash in May 2022, marking a positive shift after a challenging period for stablecoins.
Stablecoins, pegged to the US dollar, have been crucial for purchasing cryptocurrencies since 2020. The recent surge in their supply suggests that investors may be gearing up to acquire more cryptocurrencies or utilize them in trading activities.
Reflexivity research suggests that the rise in stablecoin supply reflects an influx of money into the system, signaling increased investor interest.
This uptrend aligns with Bitcoin’s price doubling to over $35,000 this year, driven in part by optimism regarding regulatory approvals for a Bitcoin exchange-traded fund in the United States.
The stablecoin market faced challenges following the Terra crash in May 2022, leading to significant losses. Subsequent concerns with crypto lenders and exchanges further shook investor confidence.