A Healthy Outlook for the Crypto Market
As investors await clearer directions with regard to where the crypto market is headed, BTC continues to trade in a narrow range near the $50k level. Although ETH is sitting well above its support at the $4,250 level, it is still struggling to clear the resistance zone at the $4,450 level. Many L1 altcoins seem to be faring better, with some like LUNA even seeing double-digit percentage gains through the weekend correction.
On the stablecoin front, the total stablecoin supply has grown from $129 billion to almost $150 billion in just the past month alone. In particular, the growth of USDC has been staggering to say the least. In November, USDC’s supply growth exceeded that of USDT’s (the largest stablecoin by market cap) by a whopping $1.8 billion, and they are slowly but surely eating up USDT’s market share. The USDC/USDT ratio has also increased substantially, rising from a mere 0.19 at the beginning of this year to the current 0.53.
This is good news for the crypto space as a whole, as huge stablecoin inflows into major exchanges generally indicate a healthy level of market liquidity.
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Crypto CEOs Head to Congress
The CEOs of 6 major U.S. crypto firms were summoned to the House Financial Services Committee hearing on Wednesday to discuss the growing importance of crypto and the issues that come with it, as well as to negotiate for a regulatory framework that will not completely stunt the growth of the crypto industry.
While past hearings were mainly focused on the criminal activities that are ostensibly enabled by the crypto space, Wednesday’s session saw quite a few members of the U.S. Congress genuinely inquiring about the potential of cryptocurrencies and blockchain technology to facilitate greater financial inclusion around the world.
