Shiba Inu, Maker, XRP begin recovery as crypto buying power returns

The  Securities & Exchange Commission’s (SEC) crackdown on cryptocurrencies triggered a marketwide crypto bloodbath between June 5 and the weekend.

The recent jump in the combined market capitalization of leading stablecoins points to a likely increase in buying power in crypto. Rising purchasing power is conducive to recovery in altcoins. 

Also read: Recent Bitcoin price crash triggers whales to scoop BTC at discount

Market capitalisation of stablecoins climbs

True USD (TUSD) market capitalisation climbed by $1 billion over the weekend. This is a key milestone in the stablecoin ecosystem. After a gradual decline over the last 15 months, the market capitalisation of the top six stablecoins - USD Tether (USDT), USD Coin (USDC), Binance USD (BUSD), DAI, True USD (TUSD),and USDP Stablecoin (USDP) - jumped up alongside TUSD’s rise. 

Stablecoin market capitalisation 

Stablecoins represent buying power in crypto, that could fuel demand for altcoins and large market capitalisation assets like Bitcoin and Ethereum. 

Shiba Inu, XRP and Maker begin recovery

Shiba Inu (SHIB), XRP and Maker (MKR) prices climbed over the weekend, alongside the increase in stablecoin market cap. SHIB, XRP and MKR wiped out losses from the weekend and climbed 3.5%, 2.6% and 3.5%, respectively.

The recovery in the three cryptocurrencies paves the way for inflow of capital to the altcoin category. Crypto market participants’ demand for altcoins is represented by the uptick in TUSD’s market capitalisation.

Other catalysts driving these altcoin prices higher are developments in the SHIB metaverse, and updates in the SEC vs. Ripple case.