Large investors accumulated 5.09% of leading stablecoins as stablecoins mark the highest market cap since 2022.
Whales now hold 55.37% of the total supply, indicating significant institutional participation.
Stablecoins serve as a refuge from volatility and provide liquidity for future trades, analysts suggest.
Crypto analysis platform Santiment revealed a surge in stablecoin holdings by large investors. Their data shows that wallets containing at least $5 million in cryptocurrency have collectively added 5.09% of the total supply of leading stablecoins like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) over the past three weeks.
🤑 The supply of #stablecoins appear to have been rapidly accumulated by large wallets over the past 3 weeks. Wallets holding at least $5M in #crypto have added a collective 5.09% of the combined supplies of $USDT, $USDC, $BUSD, $DAI, $TUSD, and $USDP. https://t.co/BIR43pbgNO pic.twitter.com/oCGzD8wqEU
— Santiment (@santimentfeed) April 2, 2024
Source: Santiment news
This significant accumulation, exceeding $143 billion (143.02B BTC), marks the highest combined market cap for these stablecoins since 2022. Interestingly, whales now hold a sizable portion, 55.37%, of the total supply of these major stablecoins.
One possibility is investors seeking refuge from potential market volatility by parking their funds in stablecoins, which offer price stability compared to other cryptocurrencies.
The current market capital of stablecoin stands at a total of $150.03 billion with a 0.23% rise in the past 24 hours. Of the top stablecoins being accumulated, Tether-backed stablecoin TUSD holds the majority of the stablecoin market share with $82 billion followed by other stablecoins, USDC with $10.1 billion, DAI with $2.92.
Another theory suggests these large investors might be positioning themselves for future trades. By accumulating stablecoins, they have readily available capital to buy other cryptocurrencies when prices become more attractive.
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