The post USDT Leads Surge: Stablecoin Market Cap Grows $3 Billion Amid Crypto Downturn appeared on BitcoinEthereumNews.com.

The stablecoin market demonstrated resilience amid a broader crypto market downturn. Significant gains were noted in the supply of Tether’s USDT and Circle’s USDC during this period. Stablecoins have highlighted a curious trend, with data pointing to rapid influxes into major exchanges like Binance. Discover the latest insights on how Tether and Circle capitalized on the recent crypto market decline by significantly increasing their stablecoin supplies, providing a safe haven for investors. A Week of Significant Growth for USDT and USDC The past week has been a tumultuous period for the broader cryptocurrency market, facing a sharp downturn correlating with a global stock market crash. Amidst this decline, Tether’s USDT and Circle’s USDC stood out by thriving, amassing nearly $3 billion in combined market capital growth. This significant growth in stablecoin supply underscores their increasing role as safe havens during market volatility. Market Behavior and Exchange Inflows Analytical data from Lookonchain and other industry trackers pointed out that approximately $1.3 billion of USDT was transferred from the Tether treasury directly to exchanges shortly after the market crash. Similarly, USDC observed heavy inflows, a clear indication that investors were moving towards stablecoins amidst the market chaos. The rise in exchange deposits, especially on platforms like Binance, marked a notable influx of $1.5 billion in USDT and $820 million in USDC within three days, suggesting a strategic move by traders to buy the dip. Surging Market Cap and Investor Sentiment This surge in stablecoin activity had a material impact on their respective market capitalizations. Tether’s USDT saw its market cap balloon to an unprecedented $115.4 billion. This was part of a broader upward trend for over three months. Similarly, USDC’s growth was equally remarkable, achieving a current market cap of $34.48 billion. Its sustained growth has been partly attributed to Circle’s compliance…

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Filed under: News - @ August 11, 2024 4:22 am