The post Charting the stablecoin market course for Q1 2024 appeared on BitcoinEthereumNews.com.

Journalist Posted: December 28, 2023 The stablecoin metrics pointed toward a robust crypto market and rising confidence in it. The dominance chart showed that the altcoin run was not yet done. The crypto market capitalization has been on the rise since late September. It was around that time that Bitcoin [BTC] found demand at the $26k level and began to rally higher. This infused confidence across the market. AMBCrypto looked at some relevant stablecoin metrics and found that they reflected investor confidence. Could this winning run extend into the new year? The stablecoin market shows an uptick in usage and adoption Some on-chain metrics for the stablecoin market are the exchange reserve, inflows, circulating supply, and active addresses. AMBCrypto noted that the circulating supply of ERC20 stablecoins has trended higher over the past month. The last time this happened was in February/March 2023. In the intervening period, the supply has trended downward. This could be due to a variety of factors. For example, stablecoins could be staked to earn rewards during times of market uncertainty or a lack of a strong uptrend. They might also be locked in DeFi platforms for loans or yield farming, or users could be holding their stablecoin in reserve for a large drop in prices before entering the markets. Source: CryptoQuant The uptick in the circulating supply since mid-November suggested that more stablecoins are being used in day-to-day transactions, or in trading and speculatory ventures. This pointed toward increased usage, which is generally a positive outcome. The speculation is an indication that market participants have more confidence in crypto assets. A look at the rising Open Interest of Bitcoin, or many other assets, shows strong bullish market sentiment in recent weeks. The active addresses count has also trended higher since late September. The 7-day Simple…

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Filed under: News - @ December 28, 2023 10:28 am