In another bullish sign for %Cryptocurrencies, money is flowing into %Stablecoins, the U.S. dollar-pegged digital tokens, for the first time in 18 months, according to data from Glassnode.
In the last week, the top four stablecoins have seen net positive inflows of capital for the first time since May 2022. Those stablecoins are Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Dai (DAI).
Stablecoins are frequently used to buy cryptocurrencies such as %Bitcoin (BTC) and %Ethereum (ETH). An increase in the supply of stablecoins could signal a coming rise in crypto purchases, say analysts.
Money again flowing into stablecoins comes as the price of Bitcoin (BTC) has doubled to $36,000 U.S. this year, with gains building on expectations that U.S. regulators will approve crypto exchange-traded funds (ETFs).
Stablecoins had seen steady outflows of capital ever since Terra’s LUNA digital token crashed from $80 U.S. to only a few cents in May 2022, evaporating billions of dollars of investor wealth in the process.
Stablecoins are cryptocurrencies whose underlying value is tied to another asset, typically the U.S. dollar or price of gold.