Shiba Inu, Maker, XRP begin recovery as crypto buying power returns
- 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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
