The Rising Capitalization of Stablecoins Shows Market is Recovering

After a three-month decline, the market supply of Tether has started to rise again.

According to Gabor Gurbach from VanEck Associates Corp, investors are again looking at digital assets tied to fiat money.

Either old capital is returning to the cryptosphere, or we are seeing new traders entering. Either way, the digital currency market is recovering from the strong losses suffered in May and June.

Gurbach has said on Twitter:

“In the last 4 days, the market capitalization of Tether has increased by $350 million. The additional funds injected into stablecoin directly hints at further market growth. If new capital comes in, it means new dollars are being invested in the crypto sphere.”

At the end of July, the Tether team released a batch of coins worth nearly $500 million for the first time in three months.