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Stablecoins Come Back to Exchanges

Cryptocurrency Mar 22, 2022 06:30AM ET
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Stablecoins Come Back to Exchanges

With Bitcoin wavering above $42K, Tether (USDT) shows signs that big moves may be coming for crypto, says Santiment, a cryptocurrency market analysis firm.

The firm noticed two major spikes in USDT wallet activities during the past week. The spikes of 83K and 74K daily active addresses were the highest ones since last December, Santiment stated.

The growth of USDT holder activity perfectly coincided with the Bitcoin price changes, which turned up from $37.8K bottom a day prior to the first USDT spike. The flagman crypto trades at above $42.5K as of today’s course.

The increase of assets held on exchanges indicates that market participants are more willing to sell rather than hold them. As stablecoins are typically considered a base currency before putting funds into more risky digital currencies, the growth of their inflows reflects buyers’ plans to use the stablecoins to buy more cryptocurrencies.

Santiment claims, this has been historically considered a bullish sign and encourages crypto traders to keep an eye on the diminishing stagnancy.

Balances on exchanges grow

The balance of a dollar-pegged USDT on crypto exchanges reached over $4.3 billion today, says the data from another crypto market analytics Glassnode. This is still one of the highest numbers since March 1 record highs of over $5 billion USDT.

In addition to increased USDT inflows to trading platforms, USD Coin (USDC) balances are also hitting their all-time milestones, with more than $2 billion USDC being currently held on crypto exchange addresses. This is more than 20% of the USDC supply.

Bitcoin price stabilizes

In the meantime, Bitcoin briefly crossed its $43K level today, climbing by nearly 6% within the past 24 hours. BTC later slightly corrected and dropped to $42.5K as of the time of writing, however, the levels have not been seen since the first days of March.

The positive sentiment towards BTC price growth might be related to the expectations of the United Stas Securities and Exchange Commission (SEC) to approve the first Bitcoin spot ETF.

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Stablecoins Come Back to Exchanges
 

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