The supply of Tether's USDT and Circle's USDC has increased by $5.4 billion in the week following the U.S. election, reflecting a surge in demand for crypto liquidity. Post-election, investors who had been sidelined began to enter the market, contributing to a stablecoin exchange balance that reached a yearly high of $41 billion. USDT's circulation rose by $3.8 billion to a new record of $124 billion, while USDC grew by $1.6 billion to nearly $37 billion. This expansion signals significant capital inflows into the crypto economy as stablecoins, which are pegged to the U.S. dollar, are crucial for trading on exchanges. The uptick in stablecoin supply is seen as bullish for digital assets, illustrating that both retail and institutional investors are actively seeking opportunities in the market. Additionally, the balances of Ethereum-based stablecoins showed a notable increase following the election, indicating pent-up demand for crypto assets. Overall, the scenario suggests a growing confidence in the crypto market after a period of uncertainty surrounding the election results.

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