30s Summary

The crypto market has seen substantial growth since the US election, particularly with stablecoins like Tether’s USDT and Circle’s USDC, which increased by $5.4 billion over the last week. The growth suggests increased money inflow into cryptocurrencies as more investors took interest after the election results. Investors’ interest was reflected in the balances of Ethereum-based stablecoins held on exchanges, which jumped to a new yearly high of $41 billion post-election. This boom comes as part of a broader digital asset economy growth, underpinned by a potential crypto-friendly presidency.

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After the US election, there’s been a boom in the crypto market, particularly with stablecoins. Both Tether’s USDT and Circle’s USDC have seen an increase of $5.4 billion over the last week. These stablecoins have a fixed price and are key to trading on exchanges. Their growth points to more money flowing into cryptocurrencies and a bigger demand for digital assets.

Investors were keeping their cards close to their chest before the election but as soon as the results were out, they jumped into the markets, according to David Shuttleworth, a partner at Anagram.

The two biggest stablecoins, USDT and USDC, increased by over $5 billion over the week since November 5. Specifically, USDT’s circulation increased by $3.8 billion which represented a new record of $124 billion. In contrast, USDC supply rose by $1.6 billion, reaching almost $37 billion.

The growth in the supply of stablecoins is good news for digital assets because more money coming in means more growth within the crypto system. Stablecoins are tied to external assets, usually the US dollar. They’re a key source of money for crypto trading and can help to buy assets on exchanges. Tether’s USDT is the most liquid crypto trading pair on offshore exchanges, whilst USDC is primarily used on Coinbase and DeFi (or decentralized finance) applications.

“There were a lot of investors, both individual and institutional, holding back before the election”, explained Shuttleworth. “But once the results came out, the floodgates opened and more and more money started coming in.”

This can be seen through the balances of Ethereum-based stablecoins held on exchanges. The number of stablecoins on these exchanges fell leading up to the election as investors waited and watched, then jumped to a new yearly high of $41 billion (up from $36 billion in early November) after the election.

This growth in stablecoins comes as the broader digital asset economy is booming. Bitcoin reached record highs following Trump’s victory, whilst the promise of a crypto-friendly presidency has unleashed a wave of enthusiasm across the markets.