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Stablecoins Hit $200 Billion—Does This Signal A Massive Crypto Rally?

For the past few months, stablecoins have yielded the spotlight to their more speculative counterparts, including tokens inspired by politicians. However, recent on-chain data suggests that stablecoins are back and have surpassed the $200 billion market cap. Related Reading: XRP $10 Price Tag Hinges On SEC Lawsuit Conclusion, Analyst Says According to the data shared by Alphractal, the segment’s capitalization has surged to $211 billion, a record high, thanks to months of stable growth, which started in mid-2023. Stablecoins‘ market capitalization grew by 73% from its August 2023 value of $121 billion, updated data released on January 31st show. The primary driver of this segment’s growth is still Tether’s USDT, however, USDC has been gaining ground recently, which is fascinating. ???? Stablecoin Market Cap Surpasses $211B – USDC Gains Momentum! Since 2023, the stablecoin market has grown significantly, mainly driven by USDT (Tether). However, recently, USDC has been gaining an edge over other stablecoins. This trend is occurring due to the recent drop in… pic.twitter.com/IRKrQErmCE — Alphractal (@Alphractal) January 31, 2025 Tether’s USDT Remains Primary Driver Of Growth Since 2023, the stablecoin market has grown steady, mostly due to Tether’s USDT. As of now, stablecoins are worth $223 billion, which is a 0.2% increase from yesterday. Interestingly, USDT and USDC are the present growth drivers of stablecoins. Apart from the numbers from both coins, the stablecoins group hasn’t changed much since 2023 and has shown steady and average values. Right now, Tether’s USDT is valued at almost $140 billion, and USDC is at $53 billion. USDC Slowly Gains Ground On Other Coins Alphractal’s post on Twitter/X shows that USDC has been gaining ground over other stablecoins in the market. According to the post, this is happening due to a drop in altcoin prices and since a substantial part of the sell-offs have been swapped into USDC. The post also showed that USDC’s dominance in this segment has hit a key resistance level, the same amount observed in 2021. This was the start of the bear market in 2022 when Bitcoin’s price dropped to as low as $15,500. If this metric persists, it can serve as the market’s bearish signal, impacting investors’ buying decisions. However, if this metric declines, it can be USDC’s jumping board to claim new highs. Related Reading: 21Shares Bets On Polkadot, Files For Spot ETF With SEC What To Expect From The Stablecoins Segment In The Short-Term In the last bull run, USDC’s supply increased in May, then reached its high in March 2022. The stablecoin’s market cap increased by 170% from April 2021 to March 2022. If the current coin supply continues to grow but price starts to dip, then the stablecoin market may hit its peak in a few months. Traditionally, a rising market cap for stablecoins reflects growing investors’ confidence, which signals an increase in capital inflows. On the contrary, a rising stablecoin market cap is usually associated with growing investor conviction, signaling the potential for boosted capital inflows. This suggests that the bullish momentum could continue for a few more months. Featured image from Gemini Imagen, chart from TradingView NullTx

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AVAX Price Continues To Consolidate Around $35 — Here Are The Levels To Watch

The AVAX price has been mostly quiet since the start of 2025, mirroring the climate of the altcoin market so far in the new year. After reaching a local high of $55 in early December 2024, the Avalanche token has been in a steady decline, reaching as low as $32.2 on Wednesday, January 29. Investors, Watch Out For These Price Levels In a new post on the X platform, popular crypto analyst Ali Martinez revealed the key on-chain levels that could prove pivotal to the future trajectory of AVAX price. This on-chain observation focuses on the average cost basis of several Avalanche investors. In cost-basis analysis, a zone’s capacity to serve as support or resistance depends on the total amount of tokens last purchased by investors at the level. As shown in the chart below, the size of the dot represents and is directly proportional to the number of AVAX tokens acquired within each corresponding price range. Related Reading: Chainlink Could Target $30 Once It Breaks Bullish Pattern – Top Analyst According to data from IntoTheBlock, around 302,100 addresses purchased approximately 14.26 million AVAX tokens within the price range of $34.01 and $35.15. As highlighted by Martinez, this has led to the formation of a crucial support cushion within this price region. The $34.5 region is able to act as a crucial support level due to the number of investors with their cost basis in and around it. The rationale is that when the AVAX price returns to $34.5, investors with their cost basis around this zone are likely to double down and defend their position by acquiring more tokens, allowing prices to quickly recover. Furthermore, IntoTheBlock data shows that the $39.49 – $40.54 price bracket is currently thick with investors. According to data from IntoTheBlock, more than 233,000 addresses bought over 12.33 million AVAX between the price range. Martinez noted that this $39.49 – $40.54 price region is a major resistance zone because investors are always likely to make a move when an asset returns to their cost basis. In this scenario, investors who were in the red before may want to quickly sell their holdings as soon as they enter profit, which could place downward pressure on the AVAX price. The price action of the AVAX around two regions could make or mar its performance over the next few weeks. Hence, investors might want to pay extra attention to the altcoin whenever it approaches these support and resistance zones. AVAX Price At A Glance As of this writing, the price of AVAX stands at around $34.8, reflecting a mere 1% increase in the past 24 hours. The premier cryptocurrency’s performance is even more sluggish on larger timeframes. According to data from CoinGecko, the Avalanche is down by nearly 3% in the past seven days. Related Reading: Bitcoin Price Enters Ascending Phase After Cup And Handle Formation At $105,000, Here’s The Next Target Featured image from IQ.wiki, chart from TradingView NullTx