Connect with us

Hi, what are you looking for?

Cryptocurrency

Glassnode predicts BTC rally as stablecoin supply tags record highs

Hey there! Before reading the article which is about Glassnode predicts BTC rally as stablecoin supply tags record highs, you should read about bit coin price. It shares basic information about this article and also adds more value to it. Do let us know how you feel about it in the comment section below. Happy Reading! Really glad that you are here.

Glassnode, the leading cryptocurrency analysis platform, has predicted that Bitcoin (BTC) will rally to around $5,000 in the coming weeks. In its latest analysis, the platform has attributed the expected rally to a record high in the supply of stablecoins. This is expected, as stablecoins are known to be the ‘bubble pops’ of the crypto world. They are often used as a hedge against the potential of a bear market, but as soon as crypto bull runs start happening, people have no use for them, and they become worthless.

While Bitcoin’s price has been bearish, the supply of Tether has been rapidly increasing. Tether (USDT) is the most liquid currency on the market, and many traders and exchanges use it as a stablecoin, or a held asset to help control price fluctuations. It is also widely used by investors to move between various cryptocurrencies and is one of the most traded currencies on the market. On Monday, Tether saw a record high of $3.6bn, and this is a sign that the cryptocurrency market is getting ready to rally.

The volume of supply in circulation of the four largest stablecoins has reached new all-time highs, suggesting that buyers could soon trigger a further rise in the bitcoin and cryptocurrency market.

Since the beginning of this year, the combined capitalization of Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Dai (DAI) has increased by nearly 190% from $27 billion to nearly $78 billion.

In his Week on Chain report of 3. In May, analytics provider Glassnode noted that Tether is firmly in the lead of the stablecoin sector, accounting for two-thirds of the combined capitalization of the four largest stablecoins. Late last week, USDT’s total supply reached an all-time high of $51.78 billion, up $1.48 billion or 3% in just seven days.

USDC’s offering also increased by about $1 billion last week, with a current capitalization of $14.5 billion, according to CoinGecko. The 30th. In April, it briefly peaked at $15 billion.

The circulating stock of BUSD of the 3rd. In May, it reached a record $7.8 billion, while DAI shares stand at a record $3.9 billion at the time of writing.

With the increase in supply, Glassnode points out that the bitcoin stable supply ratio (SSR), which measures bitcoin supply divided by bitcoin stable supply, is at its lowest level in the past year at 13.4, approaching the all-time low of 9.6.

ratio of bitcoin to stablecoin supply: Glassnode

The chart shows that SSR remained at a low level in 2020 and 2021, as the supply of stablecoin increased mainly in proportion to the increase in the bitcoin price.

According to Glassnode, the decline in the SSR value is a bullish signal that the global supply of stablecoins is increasing relative to bitcoin market capitalization :

As the overall supply of stablecoin increases, this indicates an increase in the purchasing power of crypto-currency capital that can be quickly traded and converted into BTC and other crypto assets.

Aave’s cash incentives, which were announced at 27. April was also intended to boost demand for stackablecoins, as most of the rewards were for mining USDT, USDC and DAI. DeFi investors noted that Aave’s return had an immediate impact on Stablecoin’s loan volume, which has more than doubled since late April.

This source has been very much helpful in doing our research. Read more about bitcoin and let us know what you think.

Related Tags:

bitcoin average daily trading volumebit coin pricehow much are bitcoins worthbitcoin forecastbitcoin,People also search for,Privacy settings,How Search works,bit coin price,how much are bitcoins worth,bitcoin forecast,bitcoin,bitcoin average daily trading volume

Advertisement

You May Also Like

Cryptocurrency

Activity in cryptocurrencies seems to be losing momentum, especially when it comes to Monero mining, as a recent report suggests a slowdown in illegal...

Cryptocurrency

While gambling is no stranger to the blockchain, poker’s appeal to players has only increased as poker sites accept bitcoin and Covid-19 increasingly promotes...

Cryptocurrency

Github’s services are under investigation following a series of reports of attacks on one of its infrastructures by launching unauthorized cryptomining applications. Cybercriminals have...

Cryptocurrency

The former South Korean social media giant is still making good on its promise to revive the company through the cryptocurrency sector. A local...