Influx of Money in the Crypto Market
Money is flowing into the crypto market through stablecoins, indicating the first positive supply growth in over a year. According to blockchain analytics firm Glassnode, the 90-day net change in the supply of the top four stablecoins, Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and Dai (DAI), has turned noticeably positive, marking the first such instance since the collapse of Terra in mid-May 2022.
Stablecoins have been widely used to fund cryptocurrency purchases since 2020. An increase in their supply is seen as a potential buying pressure or a reserve of funds that investors can deploy to purchase cryptocurrencies or use as a margin in derivatives trading.
