According to DefiLlama and Wintermute, the total stablecoin market cap rose above $164 billion for the first time since Terra collapsed in May 2022. The indicator has been hovering around the $160 billion mark. In a note, Wintermute said the increase "indicates growing investor optimism, underpinning the bullish outlook. The increase in stablecoin supply indicates that money is being deposited into the on-chain ecosystem to generate economic activity, either through direct on-chain purchases that can catalyze price increases or through yield generation strategies that can improve [market] liquidity. This activity ultimately promotes positive on-chain growth." Blockchain analysis firm Nansen expressed a similar opinion, calling the growth in stablecoin market cap a bullish development.