Cryptomarket liquidity has reached unprecedented levels, with the market capitalization of major USD-backed stablecoins reaching $169 billion at the end of September, up 31% since the beginning of the year, according to CryptoQuant data. did. This surge is primarily driven by Tether’s USDT, which has seen a significant increase in balances on centralized exchanges.
Stablecoin market capitalization (CryptoQuant)
The exchange’s USDT (ERC20 on Ethereum) balance increased to 22.7 billion in October, marking a 54% increase of $8 billion since the beginning of the year. The centralized exchange also holds approximately $8.5 billion of USDT issued on the TRON network. The rise in these stablecoin balances is positively correlated with the rise in the price of Bitcoin and cryptocurrencies, but even though USDT balances have increased by 20% since August, the price of Bitcoin has remained relatively flat. It continues to be.
Since the bull cycle began in January 2023, the exchange’s USDT (ERC20) has increased 146% from $9.2 billion to $22.7 billion. The influx of stablecoins onto exchanges signals increased liquidity and the potential for market volatility.
Meanwhile, Ripple entered the stablecoin market with the launch of RLUSD, a USD-backed stablecoin introduced at the end of September. RLUSD has a market capitalization of $47 million and operates on both the XRP Ledger and Ethereum networks. This move positions Ripple in the expanding remittance and remittance market.
Increased liquidity from stablecoins like USDT and the emergence of new players like Ripple’s RLUSD may signal upcoming changes in the crypto market landscape.
