The latest market recovery has sparked concerns about a potential retracement. But a new analysis offers a reassuring perspective for those who are apprehensive.
According to Santiment, the growing number of non-empty stablecoin wallets indicates increased investor interest and engagement in stable assets.
Growing Confidence in Stablecoins During Market Recovery
Specifically, in 2024, the number of non-empty USDC wallets increased by 13.9%, while USDT wallets saw an even higher growth of 15.7%. This trend suggests that more investors are opting to hold stablecoins, which could stabilize the market and mitigate the impact of future retraces.
Concerned about another #crypto market retrace? You may be comforted by the fact that the amount of non-empty #stablecoin wallets are rising. In 2024, the amount of #USDCoin non-empty wallets has grown by +13.9%, and #Tether wallets have grown +15.7%. https://t.co/9K2y8UgOv9 pic.twitter.com/mxdkrgn36M
— Santiment (@santimentfeed) May 23, 2024
Santiment’s data further revealed a significant adoption and growth of stablecoin wallets. Among the stablecoins tracked, Tether (USDT) has the highest number of non-empty wallets, standing at a whopping 5.7 million. This figure highlights the widespread use and popularity of the leading stablecoin within the cryptocurrency ecosystem.
Next up is Circle’s USDC, with 2.15 million non-empty wallets, indicating a strong demand. Although lower than Tether, the USDC wallet count is still noteworthy, reflecting its growing acceptance and adoption despite last year’s setback.
The decentralized stablecoin, DAI, issued by MakerDAO, also attracted a notable presence with 503,180 non-empty wallets, indicating the increased interest in decentralized finance (DeFi) and the use of DAI as a stable asset within these protocols and applications.
Lastly, BUSD, the stablecoin issued by the popular cryptocurrency exchange Binance, has 128,210 non-empty wallets. While lower than the others, this figure still represents a significant user base for BUSD, even after Binance ceased support of the token.
Stablecoin Market Growth 2024
The stablecoin market cap has seen tremendous recovery and growth this year, rising to $161.4 billion, which is indicative of heightened capital inflows into the market. The US spot Bitcoin ETFs sector significantly contributed to this growth as institutional investors and major traditional finance entities boosted their stablecoin holdings to capitalize on the ETF market.
According to Chainalysis’ recent findings, in January 2024 alone, the US recorded stablecoin purchases of over $30 billion.
Although the US and the EU continue to have a strong presence in the market, emerging economies like Thailand, Brazil, and particularly Turkey stand out for their stablecoin purchases relative to their national GDP.
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