Stablecoins Join The Crypto Bull Run With $140B Market Cap, Highest Since 2022

February has been an overall notable month for cryptocurrencies and the crypto industry. We’ve seen Bitcoin and Ether, the two largest cryptocurrencies by market capitalization, reach milestones not seen since the crypto winter started.

The bull run has seemingly started, as many analysts and investors have announced, and it appears to be following a ‘2-year trend’ where the industry is beginning to reclaim the heights lost in 2022. Consequentially, the rally has propelled the overall market cap of the crypto industry.

Stablecoins Remain Stable, But The Market Is Expanding

According to data from DefiLlama, stablecoins have joined the crypto market in the bullish rally, as its market capitalization hit $140 billion for the first time since December 2022.

Stablecoins are cryptocurrencies designed to have value pegged to another currency, like the US dollar, or a commodity, like gold. They account for a large portion of the daily trading volume of cryptocurrencies, as many consider them more useful for everyday transactions.

The slow and steady recovery of the crypto industry has been maturing the bullish sentiment in the community. Fueled by investors’ trust in crypto assets and important developments in the industry, the crypto market seems to be recovering to achieve a performance like that of the previous crypto bull run.

However, stablecoin’s recent market expansion is not only fueled by the positive sentiment. Tether (USDT) sits as the third largest cryptocurrency by market capitalization, with over $98 billion, and it has continued to extend its reach in the last few years.

Just this month, USDT’s market cap increased by $2 billion; in the last year, it has risen by over $28 billion. USDT is also ranked as the first cryptocurrency by trading volume in the previous 24 hours, according to data from CoinMarketCap.

Circle’s USDC, ranked fifth by daily trading volume and seventh by market cap, has also seen impressive growth, with its $2 billion market cap increase showing a recovery this month.

The stablecoin’s market capitalization saw a 1-year slump after dropping from $40 billion in March last year. However, the relisting of its trading pairs on Binance and the recent expansion to international markets has fueled USDC’s ‘resurgence,’ as Coinbase recently called it.

Crypto Market Cap Hits $2T

Today, the total crypto market cap hit $2 trillion as Bitcoin’s price spiked to $57,000, increasing 32.2% monthly and 101.3% in the past year. This milestone has not been reached since April 2022, when the total crypto market cap was at $2.1 trillion.

However, Bitcoin’s parabolic surge is not the only reason behind this achievement, as the altcoin market cap, which includes all cryptocurrencies except for BTC, has grown 29.35% in 30 days.

Accordingly, the market capitalization for altcoins hit $255 billion, representing a 111.6% surge last year. Similarly, this level has not been seen since April of 2022.

The altcoin market has seen green throughout February as interest in cryptocurrencies soared massively, led by the ETFs frenzy that started building at the end of last year and exploded in January.

Crypto, crypto market cap

Circle And SBI Holdings Partnership To Boost USDC In Japan

Global financial firm Circle has announced a strategic partnership with the Japanese financial services SBI Holdings, Inc., to promote the adoption of Circle’s USDC stablecoin and web3 services in Japan.

Circle Joins SBI Holdings In A Memorandum Of Understanding

According to the announcement, both parties have signed a Memorandum of Understanding (MOU) toward promoting UDSC‘s adoption in the country. Due to this, both parties are also committed to accurately abiding by stablecoin-related regulations and communication with authorities.

The announcement read:

The companies have signed an MOU underpinning the work ahead, which includes SBI Group and Circle initially working towards the circulation of USDC and expanding the use of stablecoins in Japan. SBI Group and Circle have also committed to properly complying with stablecoin-related regulations, including communication with authorities.

Circle’s partnership with SBI Holdings comes amid the Japanese government’s goal of encouraging the expansion of the Web3 business and enacting new stablecoin rules. In June, Japan’s updated Payment Services Act was published, emphasizing stablecoin regulation. 

The Revised Payment Service Act focuses on stablecoin issuance and circulation in Japan as it moves toward a Web3 economy.

As a global leader in the digital asset economy, the Japanese government revised the Payment Services Act (the Revised Payment Services Act), on June 3, 2023, to establish regulations for stablecoins. The regulation is expected to stimulate the issuance and circulation of stablecoins in Japan and advance Japan’s transition towards a Web3 economy.

Furthermore, it creates “collateralized” stablecoins that are backed by legal tender. This way, Circle’s USDC goes a step further because it is backed 100% by highly liquid cash and cash-equivalent assets and is always convertible 1 to 1 for US dollars.

The announcement also highlighted a banking relationship between Circle and SBI Shinsei Bank. This is because the SBI Shinsei bank will provide banking services to the firm. As a result of this, USDC and liquidity become accessible for users and businesses in Japan.

Furthermore, SBI Group will embrace Circle’s Web3 Services solutions into its digital asset portfolio strategy. These include Programmable Wallet, smart contract management tools, and blockchain infrastructure.

The Company’s CEO On The Partnership

Circle’s Chief Executive Officer (CEO) Jeremy Allaire has expressed his pleasure in the recent collaboration with SBI Holdings. The CEO has taken to X (formerly Twitter) to share his optimism on the partnership.

According to him, the partnership exhibits a shared vision for digital currency’s future. The partnership also marks a significant milestone for Circle, as it plans to expand in Japan and Asia Pacific.

Allaire stated:

Our partnership with SBI Holdings represents a shared vision for the future of digital currency and is a significant milestone in Circle’s expansion plans in Japan and the Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.

So far, SBI Holdings is requesting registration as an electronic payment instruments service, as this is subject to approval by the authorities.

Circle USDC

Matrixport Reveals Top 6 Bitcoin, Ethereum And Crypto Predictions For 2024

Matrixport, a leading player in the digital asset space, released a research titled “2024 Unveiled: Six Micro and Macro Events That Will Shape Bitcoin” dated Thursday, November 9, 2023, shedding light on crucial events projected to shape the crypto landscape in 2024. The report highlights a mix of micro and macro events anticipated to positively impact the industry, with a particular focus on Bitcoin.

Top 6 Predictions For Bitcoin And Crypto

First, the report underlines the anticipation of the US Securities and Exchange Commission (SEC) approving a Bitcoin ETF. Notably, the company believes that the approval of the first spot ETFs will take a few more weeks. Matrixport stated, “By January 2024, we anticipate the SEC to approve a Bitcoin ETF, with trading expected to commence by February or March.” This event is viewed as a massive catalyst for increased institutional investment in Bitcoin.

Further, Matrixport points to the potential listing of stablecoin issuer Circle on the stock market by April 2024. This event is seen as a significant step towards mainstream acceptance of digital assets. According to a Bitcoinist report, Circle, the company behind the stablecoin USDC, is contemplating an Initial Public Offering (IPO) in early 2024.

Currently, the company is engaging with consultants to lay the groundwork for this potential public listing, though it remains uncertain whether the IPO will ultimately materialize.

The third prediction of Matrixport concerns FTX, “While the announcement of FTX’s winning bid could occur in December 2023, we project the exchange to be operational by May or June 2024,” the report forecasts. FTX is anticipated to reclaim its position as a top 3 exchange within 12 months, making a strong comeback in the crypto exchange landscape.

Also, the report mentions the interplay of these three events with the Bitcoin halving cycle, suggesting a synergistic effect that could provide momentum into the following year. The halving is expected to take place at the end of April 2024 and could be the most impactful halving of all time. Bitcoin will become the hardest asset in the world as BTC’s inflation rate will fall to half that of gold.

Ethereum And Macro Predictions

As a fifth prediction, Matrixport sees Ethereum’s EIP-4844 upgrade, scheduled for Q1 2024, as a less significant, yet noteworthy event. The report states, “Although seeing this as a significant upside catalyst is challenging, in Q1 2024, Ethereum’s IEP-4844 upgrade is scheduled to take place.”

Related Reading: A Chat With Paolo Ardoino: What’s Behind The Bitcoin Price Rally, New Role As CEO, And Adoption

Furthermore, the potential US Federal Reserve interest rate cut by mid-2024 is mentioned as a macro event that could have a significant impact on the crypto market. “This [Ethereum’s upgrade] also coincides with the potential US Federal Reserve interest rate cut by mid-2024, as market pricing indicates the first rate cut happening in June 2024,” the report elaborates.

The report concludes with an analysis of the short-term Bitcoin price movement. It notes, “Next week’s US CPI data could trigger another rally in Bitcoin if inflation declines again.”

The report forecasts Bitcoin attempting to break out, with a potential to reach up to $45,000 by the end of 2023, catalyzed by a ‘Santa Claus rally’.

At press time, BTC traded at $36,657.

Bitcoin price