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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