The latest rise in the price of Bitcoin highlights the need for the stablecoin market to make pace with it. As per CryptoQuant, the popular on-chain analytics platform, the stablecoins, especially USDT, need substantial liquidity to support the continued surge in the BTC prices. The company took to its official social media account to provide the details of the present scenario surrounding the stablecoins.
Stablecoins Like USDT Need a Liquidity Jump for Continued Price Rise of Bitcoin
The platform noted in its recent X post that the current growth of USDT in its market capitalization is nearly 0%. This figure shows a huge decline from the previous 6.6% growth that it saw back in March. At that time, the top crypto asset reached a significant price level of up to $70,000. USDT operates as a broadly utilized stablecoin and offers a stable value standard.
The Present Stagnation in the USDT Market Cap Implies a Dip in Capital Inclusion
In addition to this, it is also known as a highly liquid source to trade diverse crypto assets like Bitcoin. With the growth in the market capitalization of USDT, the potential for a massive increase in liquidity also rises. This enables trading operations and potentially elevating the price of Bitcoin.
Hence, liquidity plays a critical role in supporting big transfers and maintaining stability in the market. The present stagnation in the market capitalization of USDT indicates a decrease in the inclusion of additional capital into the overall crypto market.
