$ 7 billion stablecoins “waiting” to enter in the market and the number is still increasing
Current fluctuations in the traditional stock market have been directly reflected in the cryptocurrency market. Accordingly, a large amount of assets hiding in the form of stablecoins is a sign that investors are hesitant in making decisions.
The stablecoins market is growing
The stablecoin market cap has now reached a record of more than $ 7 billion. This sign shows that many traders may have escaped their positions with Bitcoin, Ethereum, and many other cryptocurrencies.
By the end of 2017, the stablecoin market was only worth about $ 1 billion. In mid-2018, that number soared to $ 3 billion. According to recent information, at the end of January 2020, the estimated amount for the stablecoin market fluctuated around $ 6 billion.
Nearly $6 billion worth of stable coins ready to move into bitcoin and the alts at a moments notice. pic.twitter.com/ISvWMSZ5DQ
— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) January 30, 2020
These are signs that stablecoins like USDT, TUSD, and USDC always have a role in storing and stabilizing value when the market is experiencing unpredictable fluctuations.
More than $ 7 billion is waiting to be re-entered the market
Since the time mentioned above, the amount of money flowing into stablecoins has been continuously increasing, especially when the progress of the Corona epidemic has continuously had lousy information. As Bloqport analyst points out in a tweet, that the stablecoin market value has increased by $ 1.5 billion in just the past one month. Bloqport thinks that this could be the driving force for a new rally of Bitcoin, once the capital flows into this asset.
DATA: There is over $7 billion in stable coins sat on exchanges, up $1.5 billion in the last month.
— Bloqport (@Bloqport) March 27, 2020
However, these arguments still need more time to verify, as the Bitcoin market plummeted yesterday. Up to now, the whole market is still in a state of chaos and high alert. However, the decision to hold capital in USDT form by traders shows somewhat of their plans.
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