February has been a significant month for cryptocurrencies and the crypto industry overall. The two largest cryptocurrencies, Bitcoin and Ether, have reached milestones not seen since the start of the crypto winter.
The current bull run has been announced by many analysts and investors, following a trend from two years ago where the industry began to reclaim its previous heights. This rally has also propelled the overall market cap of the crypto industry.
Stablecoins, which are cryptocurrencies designed to have a stable value pegged to another currency or commodity, have also joined in on the bullish rally. According to data from DefiLlama, the market capitalization of stablecoins has reached $140 billion for the first time since December 2022.
Stablecoins account for a large portion of the daily trading volume of cryptocurrencies, as they are often considered more useful for everyday transactions.
The slow and steady recovery of the crypto industry has led to a bullish sentiment within the community. This, coupled with investors’ trust in crypto assets and important developments in the industry, suggests that the market is on its way to achieving a performance similar to the previous crypto bull run.
However, the recent market expansion of stablecoins is not solely driven by positive sentiment. Tether (USDT), the third largest cryptocurrency by market capitalization, has continued to extend its reach in the last few years. In the past month alone, its market cap has increased by $2 billion, and in the past year, it has risen by over $28 billion. USDT also holds the title of 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 experienced significant growth. Its market cap has increased by $2 billion this month, showing signs of a recovery. USDC’s trading pairs were recently relisted on Binance, and its expansion into international markets has been referred to as a “resurgence” by Coinbase.
Today, the total crypto market cap hit $2 trillion as Bitcoin’s price spiked to $57,000. This represents a 32.2% increase in the past month and a 101.3% increase in the past year. The last time this milestone was reached was in April 2022, when the total market cap was at $2.1 trillion.
However, Bitcoin’s surge is not the only reason for this achievement. The altcoin market, which includes all cryptocurrencies except for BTC, has also seen significant growth. In the past 30 days, the altcoin market cap has grown by 29.35%, and in the past year, it has increased by 111.6%. This level has not been seen since April 2022.
The altcoin market has seen a surge in interest throughout February, driven by the frenzy surrounding ETFs that began at the end of last year and exploded in January.
The feature image is from Unsplash.com, and charts are from Tradingview.com and DeFiLlama.com.