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The crypto ecosystem is seeing more impressive capital inflows than ever before, and current data from analytics platform CryptoQuant has revealed that the market liquidity has hit a new all-time high (ATH).
Stablecoin liquidity and altcoin boom
Per CryptoQuant data, the total circulating supply of ERC-20-based stablecoins is pegged at an ATH of 76,150,161,366.21, up by 0.44%. CryptoQuant analysis projected that this boom in the stablecoin supply is beneficial not just to Bitcoin (BTC) but to altcoins as well.
“The increase in stablecoin supply can indicate purchase demand not only for #Bitcoin but also for other coins, and to that extent, the current market atmosphere can be interpreted as positive,” Market Analyst and Researcher Crypto Dan said in a statement.
Bitcoin remains the crucial anchor for broader market growth, and while its ATH sojourn remains a well-watched trend over the past week, CryptoQuant projects that the altcoin boom is around the corner.
The most capitalized of the horde, Ethereum (ETH), is on track to welcome a crucial upgrade, the Dencun Upgrade that will make transaction costs and scalability on layer-2 protocols highly optimized to encourage more enhanced uses.
Other notable altcoin moments
While the majority of the growth from altcoins is fueled by the correlation they bear with Bitcoin, many are not sitting on their laurels as active development is ongoing.
Cardano is also championing the release of new engines, with Midnight Protocol and Hydra among the most innovative that might change the game for its ecosystem's growth across the board.
While Cardano is a more established altcoin, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) are also building strong momentum that might even push the former out of the top 10 of the most capitalized digital currencies. In general, altcoins have the upper hand to lead in this bull cycle, as they can combine their internal catalysts with Bitcoin hype to print massive valuations.
Yuri Molchan
Arman Shirinyan
Tomiwabold Olajide
