New money flows into crypto as Tether and Dai wallet creation rises

Tether (CRYPTO:USDT) and Dai (CRYPTO:DAI) have seen a significant increase in wallet creation, hinting at fresh capital entering the cryptocurrency market. 

The Tether network recorded a five-month high in new wallet creation, surpassing 31,300 addresses in a single day, the highest level since March 2024. 

At the same time, Multi Collateral Dai has also experienced growth, with 732 new wallets created, marking the fourth-highest level since March. 

According to an analysis by Santiment, the surge in new wallet creation comes after a market recovery, without any notable decrease in Bitcoin (CRYPTO:BTC) or Ethereum (CRYPTO:ETH) wallet activity. 

This timing suggests that new funds may be entering the crypto market, possibly indicating renewed trader confidence. 

Investors appear to be positioning themselves for future gains, taking advantage of the current market dynamics. 

The increase in new wallets aligns with a broader growth trend in stablecoins. 

Recent data from DefiLlama indicates that the total market cap of stablecoins, excluding algorithmic ones, has reached a record high of nearly $170 billion, reflecting almost a year of continuous growth. 

Tether's USDT leads the market with over $118 billion in market cap, followed by Circle's USDC at $34.43 billion, and DAI, the third-largest stablecoin, with $5.36 billion. 

PayPal's new stablecoin, PayPal USD (CRYPTO:PYUSD), has also made rapid gains, now ranking as the fifth-largest stablecoin with a market cap exceeding $1 billion. 

The recent influx of new funds comes at a crucial time as Bitcoin and other altcoins have fallen to multi-week lows over the past 24 hours. 

This drop presents an opportunity for investors to deploy stablecoins into assets like Bitcoin or other cryptocurrencies, potentially setting the stage for a market revival driven by new capital. 

The growth in wallet creation and stablecoin market cap suggests increasing interest and confidence in the crypto sector's potential recovery. 

At the time of reporting, the Tether price was $1.00, and the Dai price was $0.9999.