USDT and USDC indices show potential bitcoin upside

According to a new analysis from Santiment, the rise in the number of non-empty stablecoin wallets indicates increased investor interest and participation in the stablecoin market.

Growing confidence in stablecoins:
In 2024, the number of non-empty USDC wallets increased by 13.9%, while USDT wallets saw an even greater growth of 15.7%.

This trend indicates that more investors prefer to hold stablecoins, which may contribute to market stability and reduce the impact of future corrections.

Tether (USDT) has the largest number of non-empty wallets, at 5.7 million, highlighting the widespread use and popularity of the leading stablecoin within the cryptocurrency ecosystem.

Tether is followed by Circle's USDC, which has 2.15 million non-empty wallets, indicating strong demand for it.

Although the number of USDC wallets is smaller than Tether, it reflects a growing acceptance and widespread adoption despite the challenges the coin has faced in the past year.

The decentralized stablecoin DAI, issued by MakerDAO, also attracted significant interest with 503,180 non-empty wallets, indicating a growing interest in decentralized finance (DeFi) and the use of DAI as a stable asset within these protocols and applications.

Finally, BUSD, the stablecoin issued by Binance, has 128,210 non-empty wallets.

Although this number is lower than other coins, it still represents a large user base for BUSD, even after Binance stopped supporting this stablecoin.

The market capitalization of stablecoins has seen significant recovery and growth this year, rising to $161.4 billion, reflecting increased capital inflows into the market.

The spot Bitcoin ETF sector in the US has contributed significantly to this growth, as institutional investors and major traditional financing entities have boosted their holdings of stablecoins to capitalize on the ETF market.