Matrixport: Stablecoin Minting Has Increased Significantly, Suggesting Investors Are Investing in Crypto

Digital asset financial services firm Matrixport stated on X that stablecoin minting has increased significantly, suggesting that investors are investing in crypto.

Cryptocurrency financial services company Matrixport (X) announced that stablecoin minting has increased significantly, indicating strong capital inflows into the digital asset space.

According to Matrixport, their 7-day stablecoin minting indicator is the “most bullish signal” in the digital asset market. This indicator measures the amount of capital flowing into stablecoins on a weekly basis. The indicator is currently making higher highs, which indicates significant capital inflow into the sector.

Increased stablecoin minting indicates higher demand. Stablecoins serve as a bridge between the digital asset space and traditional finance. Therefore, as the minting of these blockchain-based tokens increases, it also contributes to the bullish sentiment. This is supported by historical data.

Surging USDT Market Cap and Circulation

The chart below shows that the market cap of Tether USD (USDT) has increased significantly over the past year. The market cap rose from $87.7 billion to $127.53 billion. The number of USDT tokens in circulation is also increasing.

According to Coinglass, 87.6 billion USDT tokens were in circulation on November 18th of last year. Currently, there are 119.7 billion USDT stablecoins in circulation.

Anticipating More Inflows

Furthermore, Matrixport highlighted that substantial price increases with low selling pressure indicate the entry of new money into the stablecoin market. However, considering historical trends, inflows are typically strong during the first quarter of the year.

Therefore, it is possible that the crypto market will witness additional inflows in the first quarter of 2025, with Bitcoin (BTC) potentially breaking the $100,000 price level and altcoins experiencing substantial gains.

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