The stablecoin market is experiencing its first expansion in over 18 months, with USDT reaching a record-breaking market cap of $89 billion.
Data from Glassnode reveals that the total market capitalization of the leading stablecoins has surged by nearly $5 billion in the past month, reaching $124 billion. This signifies a reversal of the previous sustained downtrend that began in May 2022 during the crypto bear market.
According to research from Coin Metrics, this upward trend can be seen as a promising sign of enhanced on-chain liquidity, indicating a favorable environment with increased capital available for deployment.
The majority of the growth in the stablecoin supply comes from USDT, which is predominantly utilized on centralized exchanges and for transactions in emerging markets. Since September, the supply of USDT has surged by $7 billion.