[Analysis] Tether (USDT) Market Cap Surges by $50 Billion This Year... "Expected to Remain Strong Next Year"

Image = Matrixport X Capture

The market capitalization of the stablecoin Tether (USDT) has surged by $50 billion this year. An increase in the circulation of stablecoins typically indicates a rise in capital inflow into the virtual asset market.

On the 17th, the virtual asset (cryptocurrency) service provider Matrixport reported in its 'Chart of the Day' that "Tether's market cap has surged by $50 billion this year, reaching $140 billion," and "daily trading volume has also surged to $200 billion to $300 billion. This indicates that the (virtual asset) ecosystem is rapidly expanding."

The report added, "Trading activity, which was only $30 billion last January, surged tenfold to $300 billion last month," and "with significant inflows of fiat currency into the virtual asset market, next year is expected to be a record-breaking year."

Typically, an increase in the issuance and holding of stablecoins can act as a buying pressure in the market, which is considered a bullish signal.