Tether issued $1 billion in new USDT tokens on the Tron blockchain as stablecoins’ total market cap grew. On July 24, Tether minted its latest Tron USDT inventory, paying nothing in transaction fees. This move is often seen as a positive indicator for the market. Since June 29, the total number of stablecoins in circulation has been trending upwards.

However, experts from blockchain analytics firms caution that it’s challenging to predict whether this pattern will lead to price increases. “Given there were many other factors at play in October 2023, and now, it’s hard to justify it being the next leg up on its own,” a Nansen analyst explained.

Other factors to consider include both on-chain decentralized exchange volumes, address stats, and off-chain data like exchange-traded fund flows, macro outlooks, and monetary policies.

Current trends suggest the crypto market still has some way to go before technical observers are convinced higher prices are definitely inbound, even if the stablecoin market cap surpassed $160 billion after months of stagnation.

The specific stablecoins boosting circulation also revealed how user demand is advancing. Nansen data noted that Circle’s USDC, Tether’s USDT, Maker’s DAI, Paxos’ PYUSD, and USDD were among the key contributors.

The total stablecoin market cap has finally started to break $160 billion after 3 months of remaining relatively flat, highlighting increasing demand and growing confidence in these assets.

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