A prominent analytics firm says one digital asset category with a soaring market cap could fuel a potential market recovery.
IntoTheBlock says on the social media platform X that the market cap of stablecoins has risen to a new all-time high.
While the analytics firm notes that a growing stablecoin market cap is a sign that traders are selling their coins in favor of dollar-pegged crypto assets, it also indicates that a massive amount of capital is ready to be deployed once conditions turn bullish.
“The stablecoin market cap keeps growing, recently surpassing $220 billion.
While these tokens are widely used to sidestep volatility, it’s hard to ignore how all that liquidity could become the spark for the next market upswing once sentiment flips bullish.”
One stablecoin on IntoTheBlock’s radar is Ripple USD (RLUSD), a dollar-pegged crypto asset launched just a few months ago.
“Ripple’s new RLUSD stablecoin is gaining traction.
With a circulating supply reaching $160 million and a growing number of Ethereum mainnet addresses holding it, RLUSD appears positioned to become a notable player in the stablecoin space.”
Looking at Bitcoin, the insights firm says deep-pocketed investors are gobbling up BTC after trimming their exposure for almost a year.
“Bitcoin whale balances have been trending downward for nearly a year, but March data hints at a possible reversal.
Whales now hold around 62,000 more BTC than they did at the start of the month, indicating renewed accumulation.”
At time of writing, Bitcoin is trading for $84,039.
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