Rising capitalization of stablecoins signals a market recovery

by in Cryptocurrency News

Stablecoin

After a three-month decline, the market supply of Tether (USDT) began to increase again.

According to Gabor Gurbach of VanEck Associates Corp, investors are once again looking at digital assets pegged to fiat money.

Either the old capital is returning to the cryptosphere, or we are seeing the entry of new traders, the expert emphasized. In any case, the digital currency market is in the process of recovering after the heavy losses suffered in May and June.

Gurbach tweeted: "Over the past 4 days, the market capitalization of Tether (USDT) has increased by $350 million. The additional funds poured into the stablecoin directly hint at further market growth. If new capital comes in, it means that new dollars are being invested in the cryptosphere."

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At the end of July, for the first time in three months, the Tether team issued a batch of coins worth almost $500 million.

The supply of this stablecoin increased by 0.7%. Recall that in the spring it exceeded $80 billion, but soon fell by more than 20% to $66.3 billion.

In parallel, there is an increase in the capitalization of other major digital currencies with collateral - USDC and BUSD to $54.46 billion and $17.931 billion, respectively.