About $5 billion U.S. of new capital has flowed into %Stablecoins worldwide following the U.S. election amid a broad rally in %Cryptocurrencies.
The two leading stablecoins, %Tether (CRYPTO: $USDT) and Circle (CRYPTO: $USDC), have combined seen more than $5 billion U.S. of inflows since the Nov. 5 election, according to data from TradingView.
The amount of USDT tokens in circulation increased by $3.8 billion U.S. over the past week to a new record of $124 billionU.S.
At the same time, the supply of USDC increased by $1.6 billion U.S. to nearly $37 billion U.S.
Expansion of the stablecoin supply is seen as a positive sign for digital assets as it indicates capital is flowing into the global cryptocurrency ecosystem.
Stablecoins are cryptocurrencies whose value is pegged to an underlying asset such as the U.S. dollar or gold bullion.
Typically, stablecoins serve as a source of liquidity for cryptocurrency trading, enabling people to buy crypto and digital assets on various exchanges.
Since the U.S. election on Nov. 5, stablecoin balances have risen to a yearly high of $41 billion U.S. from around $36 billion U.S. at the start of November.
The growth in stablecoins comes amid a massive rally in cryptocurrencies after Donald Trump won the U.S. election, with the price of Bitcoin (CRYPTO: $BTC) hitting an all-time high of $90,100 U.S.
Investors are betting on less regulation and more widespread adoption of stablecoins under a new Trump administration.
