Tether (USDT) and USD Coin (USDC) Market Cap and Supply Spike Following Ethereum (ETH) ETF Approval

AMBCrypto's analysis of various stablecoin metrics has revealed significant trends, particularly in the stablecoin supply and market capitalization.

Stablecoins, designed to maintain a stable value typically pegged to fiat currencies, have seen a surge in market capitalization and supply, largely driven by the recent approval of an Ethereum (ETH) ETF.

A closer analysis of the stablecoin market reveals some key trends. Commencing around July 19, the total supply of stablecoins has exhibited a gradual uptrend, rising from approximately $168 billion.

This growth has continued, and according to the latest data, the total stablecoin supply has reached around $170 billion, marking one of its highest levels recently.

Furthermore, the increase in supply has been accompanied by a surge in the market capitalization of stablecoins.

Over the last 24 hours, the market cap has experienced an increase of over 3%. At press time, the market cap stood at $2.5 trillion, as per data from IntoTheBlock.

An analysis of Tether (USDT) by IntoTheBlock highlights its continued dominance in the stablecoin market, with a market capitalization of over $114 billion.

Among the metrics analyzed, the volume of large transactions over the last 24 hours stood out significantly. This volume reached approximately $7.4 billion, marking a substantial increase of over 19% from the previous day.

Additionally, the number of daily active addresses for USDT has seen a notable increase, rising by over 9% in the last 24 hours to nearly 87,000 active addresses.

A closer examination of USD Coin (USDC) reveals that its market capitalization stood at approximately $34 billion, making it the second-largest stablecoin after USDT.

Notably, USDC’s large transaction volume was around $7.9 billion, surpassing that of USDT. However, it has experienced a slight decline of about 1% in the last 24 hours.

Regarding network activity, the number of daily active addresses for USDC has substantially increased by over 11%. Yet, the total number remained lower at 35,000, compared to USDT.

The recent approval of Ethereum ETFs has brought a new wave of institutional and traditional finance investors into the cryptocurrency market.

This influx has also increased the demand for stablecoins. The new set of investors typically uses stablecoins as a bridge, particularly for purchasing ETH.

This phenomenon is not entirely new; a similar trend was observed following the approval of Bitcoin (BTC) ETFs earlier in the year, which also led to increased demand for stablecoins.

As more ETFs are expected to be approved, this demand is likely to continue growing.

The above is the detailed content of Tether (USDT) and USD Coin (USDC) Market Cap and Supply Spike Following Ethereum (ETH) ETF Approval. For more information, please follow other related articles on the PHP Chinese website!