Stablecoins Hit $200 Billion—Does This Signal A Massive Crypto Rally?

For the past few months, stablecoins have yielded the spotlight to their more speculative counterparts, including tokens inspired by politicians. However, recent on-chain data suggests that stablecoins are back and have surpassed the $200 billion market cap.

According to the data shared by Alphractal, the segment’s capitalization has surged to $211 billion, a record high, thanks to months of stable growth, which started in mid-2023.

Stablecoins‘ market capitalization grew by 73% from its August 2023 value of $121 billion, updated data released on January 31st show. The primary driver of this segment’s growth is still Tether’s USDT, however, USDC has been gaining ground recently, which is fascinating.