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- A bearish sentiment might occur in the crypto market if the supply of stablecoins does not increase.
- The cryptocurrency market capitalization currently is at $1.08 trillion.
- Bitcoin’s (BTC) market dominance is at 41.06% dominance.
Since the beginning of the year, the cryptocurrency market has been in a bullish trend, which has increased the market capitalization of all cryptocurrencies.
However, a recent tweet by CryptoNewsLand (CNL), a reputable and well-known media outlet, claimed that the cryptocurrency market would once more enter a bear market if the number of stablecoins in circulation does not rise.
Stablecoins s a type of cryptocurrency where the digital asset’s value is supposed to be pegged to a reference asset, which is either fiat money, exchange-traded commodities, or another cryptocurrency.
Following the Covid-19 explosion, the cryptocurrency market experienced an impressive bull run in 2020, in large part because of the sudden and sharp increase in the stablecoin supply. On the other hand, the cryptocurrency market started to trade in a gloomy mood in February of last year due to the market’s declining Stablecoin output.
The recent, short-term bull run can be attributed to the rise in the number of stablecoins in circulation on the cryptocurrency market, which has sharply increased the price of Bitcoin (BTC). However, the market may soon experience a bearish trend.
As of press time, the worldwide cryptocurrency market capitalization stood at $1.08 trillion, a 0.31% increase over the previous 24 hours and a -41.81% decrease over a year ago. Bitcoin (BTC) had a market cap of $445 billion, reflecting a 41.06% market domination. Meanwhile, the market cap of stablecoins is $138 billion, accounting for 12.74% of the total crypto market worth.
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disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
