"Stablecoins Surge Past $200B, Tether and USDC Lead Growth"

Stablecoins, a significant segment of the cryptocurrency market, have witnessed remarkable growth, with their total market capitalization surpassing the $200 billion mark. This milestone, highlighted in a report by CryptoQuant, signals potential for further expansion in the sector. Stablecoins, such as Tether's USDT and Circle's USDC, are pegged to other assets like the U.S. dollar, providing traders with a means to preserve the value of their holdings while transferring between different cryptocurrencies.

Tether's USDT, the dominant player in the stablecoin market, has seen its market capitalization increase by 15% since November, reaching $139 billion. Circle's USDC, the second-largest stablecoin, has registered a 48% growth during the same period, with a market cap of $52.5 billion. The stablecoin market has added $37 billion to its market cap since early November, coinciding with the period after the U.S. presidential election. This growth in stablecoin liquidity could be a precursor to an upward movement in bitcoin and other cryptocurrency prices, as suggested by CryptoQuant's report.

Tether's recent move to mint USDT on both Bitcoin's base layer and Lightning Network marks a pivotal shift in stablecoin utilization. Paolo Ardoino, CEO of Tether, emphasized that this innovation reinforces Bitcoin's decentralization principles while enhancing payment solutions. Meanwhile, Bitcoin has remained within a tight price range of $100K-$105K in anticipation of critical data from the U.S. regarding inflation. Traders are closely monitoring price movements, with key price levels to watch including $97.5K, $108K, and $110K.

In addition to Tether's expansion, Kraken has resumed staking services in the U.S. after a two-year pause due to SEC regulations. The new staking service allows users in 39 U.S. states to stake various cryptocurrencies, including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). Kraken's Head of Consumer, Mark Greenberg, labeled the return of staking services as a "positive development" for the U.S. crypto ecosystem.

Bitwise has received the SEC's approval for its combined Bitcoin (BTC)