What happened?
With the surge in demand for cryptocurrency liquidity after the US election, the supply of stablecoins USDT by Tether and USDC by Circle has increased by a total of $5.4 billion in the past week.
The growth in stablecoins represents a significant influx of capital into the crypto economy and increased investor demand for digital assets.
On November 11, the largest stablecoin issuer Tether launched an open-source “Wallet Development Kit (WDK)” to facilitate the integration of non-custodial digital wallets into websites or applications, further promoting the widespread adoption of cryptocurrencies.
The cryptocurrency market has surpassed $3 trillion in market capitalization, approaching the GDP of France.
With a significant increase in the cryptocurrency market in early November, the total market capitalization reached $3.12 trillion. If the cryptocurrency market were a country, it would become the 8th largest market by GDP, approaching France’s GDP, second only to economic powers like the United States, China, and Germany.
This growth is mainly driven by the significant increase in the price of Bitcoin. According to data from the International Monetary Fund, the market capitalization of Bitcoin has reached $1.77 trillion, surpassing Spain’s GDP.
In addition, the market capitalization of Bitcoin is now larger than that of tech giant Meta and is gradually catching up to globally renowned companies like Apple and Nvidia.
Cryptocurrency market enters an active bull cycle after reaching a historical high for Bitcoin in 2021. Market analyst Markus Thielen predicts that Bitcoin will maintain its dominant position and drive the market towards a $4 trillion market capitalization.
Another analyst, Rachael Lucas, believes that if the total market capitalization of cryptocurrencies continues to rise, altcoins other than Bitcoin are likely to see a significant increase.
The supply of stablecoins USDT and USDC surged by $5.4 billion, reflecting strong market demand.
The supply of stablecoins has grown in tandem with market demand, with Tether’s USDT and Circle’s USDC being the most popular.
According to data, since the US election on November 5, the demand for cryptocurrency liquidity in the market has significantly increased, resulting in a $5.4 billion increase in the total supply of USDT and USDC in just one week.
USDT is a commonly used circulating currency on global exchanges, while USDC is mainly used on the US trading platform Coinbase and decentralized finance (DeFi) applications.
TradingView shows that the circulating supply of USDT has increased by $3.8 billion in the past week, reaching a new record of $124 billion. The supply of USDC has also increased by $1.6 billion, reaching nearly $37 billion.
Due to the stability of stablecoin prices and their peg to the US dollar, they are often used as the primary trading pairs for cryptocurrency transactions by investors worldwide. The surge in demand for stablecoins in the market indicates that a large amount of capital is planning to flow into the crypto ecosystem in the near future.
Tether releases the open-source “Wallet Development Kit” to expand AI and non-custodial wallet applications.
As the cryptocurrency market continues to surge this week, more and more new users and institutions are starting to pay attention to the cryptocurrency market again.
However, despite multiple rounds of bull and bear cycles and the improvement in on-chain infrastructure and applications compared to the early days of the crypto industry, it is still relatively complex and has certain thresholds for general users.
On November 11, the largest stablecoin issuer Tether announced the launch of the open-source “Wallet Development Kit (WDK)” to assist businesses and developers in integrating non-custodial digital wallets into websites or applications more easily.
This wallet development kit supports digital assets such as Bitcoin and Tether (USDT) and has modular design and multi-system compatibility. It can be widely used in embedded devices, mobile phones, computers, websites, and even automated systems such as AI agents and robots to meet the diverse needs of human users and “digital entities.”
The wallet development kit simplifies most of the configuration process, allowing users to have easier and complete control over the encrypted assets in their wallets without relying on third-party custodial services, further enhancing decentralization and security. In addition, the wallet development kit will also release user interface templates in the future, allowing businesses to create unique user experiences on their platforms.
Reference:
cointelegraph, cointelegraph, coindesk