21 Aug, 2024

Stablecoin Market Expands: $2.21B Uptick in 8 Days Fueled by Tether's Growth Spurt

The stablecoin market has been picking up speed lately, and between Aug. 9 and Aug. 18, 2024, it expanded by $2.21 billion. During this period, Tether’s supply ballooned by an additional 1.26 billion USDT.Stablecoin Boom: $2.21B Growth Driven by Tether and PYUSDBetween Aug. 9 and Aug. 18, 2024, the stablecoin economy expanded by $2.21 billion, building on the $1.53 billion growth seen from Aug. 6 to Aug. 9. Tether (USDT) claimed a dominant 57.01% of that growth, adding 1.26 billion USDT to its supply over the eight-day span. With this boost, USDT’s $116.88 billion market cap now makes up 69.40% of the $168.42 billion stablecoin market.Over the last 30 days, USDT grew by 2.9%, while usd coin (USDC) saw a 3.3% increase. Meanwhile, Makerdao’s DAI slipped by 1%, and Ethena’s USDE dropped by 9.2% since July 19, struggling to maintain a $3 billion market cap. First Digital’s FDUSD, however, enjoyed a 17.2% rise in supply over the same period. Just two days ago, Media highlighted how Paypal’s PYUSD overtook Tron’s USDD to become the sixth-largest dollar-pegged coin.At that time, PYUSD’s supply had grown by $140.9 million in just ten days, with most of it minted on Solana. As of Aug. 16, PYUSD’s market cap stood at $791.9 million, and by Aug. 18, it reached $828.86 million, marking a $36.96 million increase in just 48 hours. Since July 19, PYUSD’s supply has surged by 41.5%, while Tron’s USDD edged up by only 0.7%. Similarly, frax dollar (FRAX) and true usd (TUSD) has remained stagnant over the past month.Alchemix usd (ALUSD) saw a modest 1.1% rise this month, while Aave’s stablecoin GHO climbed by 19% since July 19. On the other hand, Paxos’ pax dollar (USDP) decreased by 6.5%, and gemini dollar (GUSD) fell by 6.9% over the 30-day period. Once again, as with the previous week, the primary drivers of growth have been increases in the supplies of USDT and PYUSD, while others like USDC and FDUSD experienced only slight upticks.

16 Aug, 2024

Why South Korea’s NPS Invested $33.75M in MicroStrategy and Bitcoin

South Korea's National Pension Service (NPS), one of the world’s largest public pension funds, has expanded its portfolio by investing $33.75 million in MicroStrategy shares. This acquisition of 245,000 shares marks a significant foray into the digital asset industry, reflecting the fund’s strategy to diversify and seek higher returns. The investment represents 0.04% of the NPS’s total U.S. stock holdings, according to a recent 13F filing.NPS Expands Digital Asset Investments After Coinbase SuccessThis isn’t the NPS's first move into the crypto world. In Q3 2023, the pension fund invested in Coinbase, purchasing 282,673 shares. The fund capitalized on the stock’s 40% price surge, selling 23,956 shares and realizing considerable profits. The success of this investment may have fueled its decision to further invest in digital assets by acquiring MicroStrategy shares.MicroStrategy: A Leader in Bitcoin HoldingsMicroStrategy, led by Bitcoin advocate Michael Saylor, is renowned for its aggressive Bitcoin strategy. The company currently holds 226,500 Bitcoin, worth over $13 billion. This makes MicroStrategy the largest corporate holder of Bitcoin, owning almost 1% of the world’s supply. Under Saylor's leadership, the company has continually increased its Bitcoin holdings, even during periods of market downturn.South Korea's Regulatory Shift Toward Digital AssetsThe NPS's move into crypto-related stocks coincides with South Korea’s evolving digital asset regulations. The introduction of the Virtual Asset User Protection Act has provided a clearer framework, reducing the risk for institutional investors like NPS. This regulatory clarity may have bolstered the pension fund’s confidence in investing in companies with strong exposure to Bitcoin.Long-Term Crypto OutlookThe NPS's investment in MicroStrategy is part of a broader strategy to diversify its portfolio and tap into the high-growth potential of digital assets. With South Korea advancing its regulatory framework and MicroStrategy’s unwavering commitment to Bitcoin accumulation, this move reflects the growing institutional belief in the future of cryptocurrencies.This calculated investment positions NPS at the forefront of a global shift toward digital asset integration in traditional finance.