Whales Now Hold 55% of USDT, USDC, DAI Supply — Bull Run About to Explode?
One of the biggest bullish signals for the cryptocurrency market is the increase in reserves of stablecoins. This is because they are widely used to purchase other cryptocurrencies while retaining fiat value.
Whales Hoarding Stablecoins
According to data from on-chain analytics firm Santiment, whale wallets holding more than $5 million have been accumulating stablecoins like crazy over the past three weeks.
In fact, over the past three weeks, the group has acquired more than 5% of the total supply of these major tokens, including USDT, USDC, DAI, and TUSD. As of April 1, more than 55% of the total stablecoins in circulation are hosted by whales.
Santiment agrees with the theory that whales may be waiting for a major market correction that would allow them to buy in aggressively and increase their Bitcoin [BTC] positions.
Interestingly, the market did pull back on April 1. AMBCrypto investigated CryptoQuant data and found a net inflow of stablecoins into cryptocurrency exchanges, which lends credibility to the above statement.
Since the beginning of the year, exchanges have seen a significant increase in stablecoin reserves. As of the time of writing, nearly 20.36 billion tokens are held in exchange wallets, the highest level in more than a year.
Historically, increases in stablecoin deposits precede significant increases in Bitcoin market prices. Therefore, there is a greater chance of increased volatility and a Bitcoin rally in the next two weeks or so.
Top Stablecoins in Demand in 2024
Meanwhile, the global stablecoin cap continues to rise, surpassing $143 billion for the first time since 2022. The recovery is led by two major assets - USDT and USDC.
The world's largest stablecoin, USDT, has continued its positive momentum from last year, with a year-to-date (YTD) increase of 13% and a market valuation of up to $104 billion.
The real success story, however, is USDC, which has grown 33% YTD to $32 billion after suffering a major downturn last year.
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