Stablecoin

Arthur

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Glassnode data recorded a $4.1 billion monthly increase in the aggregate stablecoin supply, a 21-month high for fiat-pegged cryptocurrencies following bullish momentum.&nbsp; 
Since October last year, stablecoin supply has shot up steadily with Bitcoin’s price uptick. This ascent has impacted the aggregated stablecoin market cap, which stood above $128 billion as of Jan. 18. The <a href="https://studio.glassnode.com/dashboards/mrkt-stablecoin-supplies" target="_blank" rel="noreferrer noopener">increase</a> marks the largest inflow since March 2022. 
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 <img loading="lazy" decoding="async" width="1024" height="590" src="https://crypto.news/app/uploads/2024/01/GEIt0m2W0AA81T3-1024x590.jpg" alt="Aggregate stablecoin supply sees largest increase since October - 21" class="wp-image-14240129">
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Tether’s <a href="https://crypto.news/price/tether/" target="_blank" rel="noreferrer noopener">USDT</a> dominated the scene with nearly 73% in market share. The market’s second-largest stablecoin, Circle USD Coin (<a href="https://crypto.news/price/usd-coin/" target="_blank" rel="noreferrer noopener">USDC</a>), followed with a 19% share.&nbsp; 
Binance USD (BUSD) issued by Paxos, which the Securities and Exchange Commission <a href="https://crypto.news/busd-inflow-on-cexes-rises-as-paxos-disagrees-with-the-sec/" target="_blank" rel="noreferrer noopener">alleges</a> is a security, came third. MakerDAO’s <a href="https://crypto.news/price/dai/" target="_blank" rel="noreferrer noopener">DAI</a> and TUSD were also factored into Glassnode’s report.&nbsp; 
The collective stablecoin pool is an essential piece in cryptocurrency transactions via centralized venues like <a href="https://crypto.news/coinbase-vs-sec-judge-scrutinizes-90-year-old-securities-act/">Coinbase</a> and decentralized exchanges like <a href="https://crypto.news/coinbase-uniswap-tops-list-of-2023-crypto-protocols/" target="_blank" rel="noreferrer noopener">Uniswap</a>. Stablecoin supply and market cap progression are sometimes used to gauge market sentiment, with increments typically associated with bullish market outlooks. 
 You might also like: <a href="https://crypto.news/arthur-hayes-foresees-banking-giants-overtaking-tethers-stablecoin-dominance/"> Arthur Hayes foresees banking giants overtaking Tether’s stablecoin dominance </a> 
<h2 class="wp-block-heading" id="stablecoin-illicit-transactions-are-up">Stablecoin illicit transactions are up</h2> 
A Chainalysis report on Crypto Crime Trends noted a shift in criminal activity associated with stablecoins alongside increased transactions and supply. 
The research found that stablecoins accounted for roughly 60% of illicit transactions over two years.&nbsp;Chainalysis stressed that findings were published on initial estimates, and the trend did not apply to all criminal operations.&nbsp; 
<blockquote class="wp-block-quote"> 
 This isn’t the case for all forms of cryptocurrency-based crime. Sanctions-related volume and scam inflows are primarily driving the trend, whereas stablecoins are rarely used for ransomware and darknet markets. <cite>Chainalysis Crypto Crime Trends <a href="https://www.chainalysis.com/blog/2024-crypto-crime-report-introduction/" target="_blank" rel="noreferrer noopener">report</a></cite>
</blockquote> 
Issuers like Tether can freeze accounts and work closer with law enforcement instead of more decentralized protocols. USDT’s operator&nbsp;<a href="https://crypto.news/tether-has-frozen-32-addresses-linked/" target="_blank" rel="noreferrer noopener">deactivated</a> more than 30 addresses linked to suspicious transactions in Israel and Ukraine. 
The report states that Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) high liquidity made it the preferred crypto choice for bad actors despite a 30% drop in BTC-based illicit finance since 2021. 
 Read more: <a href="https://crypto.news/tether-addresses-un-claims-on-illicit-activity-involving-usdt/"> Tether addresses UN claims on ‘illicit activity’ involving USDT </a>

Aggregate stablecoin supply sees largest increase since October

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