Stablecoins See Positive Supply Growth For First Time in More Than a Year: Glassnode Data
Data from blockchain analytics firm Glassnode has revealed that global stablecoin supplies have increased for the first time in more than a year, indicating rising investor interest in an otherwise volatile Cryptocurrency market.
According to the data, total supply of USD-backed stablecoins (Tether (USDT), PAX, USDC, GUSD, etc.), have seen an increase of 2.41 % in the past three weeks, rising to roughly $ 24 billion.
The surge in supply is the first seen since October 2019, implying that investors have renewed interest in stablecoins following their near-infallible stability throughout the Cryptocurrency market downturn in the past year. Furthermore, the growing demand for stablecoins appears to have been driven largely by algorithmic traders, as witnessed by the remarkable growth in automated stablecoin deposits.
Overall, the data points to a revival of investor faith in stablecoins, particularly due to their low volatility and ease of use. With demand on the rise, and new stablecoin projects at the helm, the cryptocurrency ecosystem could be further revolutionized.