Stablecoin issuance fails to boost crypto market, analysis finds

The continued issuance of stablecoins like USDT and USDC has not translated into upward momentum for the cryptocurrency market, according to an analysis by BeInCrypto. The report cited several factors for this disconnect: a greater flow of newly issued stablecoins into derivatives exchanges rather than spot markets, the use of stablecoins for purposes other than cryptocurrency investment, and a lack of market inflows due to cooled investor sentiment. BeInCrypto added that while an increase in stablecoin supply can signal potential for a market rally, its actual impact is heavily dependent on market sentiment and the specific use of the funds.