The Tether network quietly achieved a 5-month high in new wallet creation, surpassing 31.3K addresses in a single day, and the highest since March 2024.
This surge has coincided with rising network growth in Multi Collateral Dai, indicating a broader trend across stablecoins.
According to Santiment’s analysis, 732 new DAI wallets were created, representing the fourth-highest figure since March 2024. Interestingly, the timing of these new wallets, emerging after a market recovery and without a significant decline in Bitcoin or Ethereum wallet activity, suggests that fresh capital might be entering the crypto market.
This could signal renewed trader confidence, with investors positioning themselves for potential future gains.
“Since these new wallets are being created after a market recovery, and without any notable decline in Bitcoin or Ethereum wallets, this may very well be a sign that new money is being injected into crypto on increasing trader confidence.”
CryptoPotato reported the stablecoins market cap, excluding algorithmic ones, reached a record high this week. According to data compiled by DefiLlama, the figure is currently near $170 billion following almost a year of uninterrupted growth.
Tether’s USDT tops the chart with over $118 billion in mcarket cap, followed closely behind by Circle’s USDC with $34.43 billion. Meanwhile, DAI is the third-largest stablecoin by market cap with $5.36 billion.
Meanwhile, PayPal’s US dollar-pegged stablecoin, PayPal USD, has quickly climbed up the ladder to position itself as the fifth-largest stablecoin with over $1 billion in market cap.
The influx of new funds in the market has come in a timely manner as BTC and the altcoins dumped hard in the past 24 hours to multi-week lows. This could allow investors to allocate stablecoins into bitcoin or other assets.