- Shiba Inu, Maker and XRP prices have started their recovery with a spike in stablecoin market capitalization.
- The combined market capitalization of the top six stablecoins jumped after a 15-month gradual decline.
- SHIB, MKR and XRP price recoveries are likely to lead a return in capital inflow to altcoins in the short term.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025
The adoption of cryptocurrency-related financial products, including tokenized treasuries, is on overdrive globally, with the focus now shifting to robust networks such as Ripple's XRP Ledger (XRPL).
Sei rallies as Wyoming selects protocol for WYST stablecoin pilot
Sei extends gains above $0.21, decoupling the token from the broader crypto market amid low sentiment and macroeconomic uncertainty. The Wyoming Stable Token Commission selects Sei Network as a candidate blockchain for the WYST, the first fiat-backed stablecoin issued by a US state.
Crypto Today: Bitcoin, Ethereum, XRP nudge higher as geopolitical tensions take a backseat
Bitcoin bulls step up, pushing the price above $106,000, as Trump said he would delay his decision about launching strikes on Iran for up to two weeks. Ethereum rebounds from the 200-day EMA support at $2,477 amid steady interest in the derivatives market.
Solana eyes trend reversal as bearish momentum bottoms out above $140
Solana experiences a minor uptick of under 1% at press time on Friday, with multiple long shadow candles forming above $140 as bearish momentum fades off. The optimism surrounding Solana is on the rise, as evidenced by the SOL Open Interest reaching a weekly high.
Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.