A prominent analytics firm says one digital asset category with a soaring market cap could fuel a potential market recovery.

IntoTheBlock says on the social media platform X that the market cap of stablecoins has risen to a new all-time high.

While the analytics firm notes that a growing stablecoin market cap is a sign that traders are selling their coins in favor of dollar-pegged crypto assets, it also indicates that a massive amount of capital is ready to be deployed once conditions turn bullish.

“The stablecoin market cap keeps growing, recently surpassing $220 billion.

While these tokens are widely used to sidestep volatility, it’s hard to ignore how all that liquidity could become the spark for the next market…