Stablecoin reserves on crypto exchanges hit new historic high of $10B
Anchor coins like Tether (USDT) and Dollar Coin (USDC) have taken another step in terms of accumulation on exchanges.
According to market data provider CryptoQuant, stablecoin holdings on global cryptocurrency exchanges rose to a new high on March 28, crossing the $10 billion mark.
According to CoinGecko, cryptocurrency exchanges currently hold nearly 16% of the total market value of all exchanges, with an exchange market capitalization of $63 billion at the time of writing. The total trading volume of all the stables is estimated to be around $88 billion.
According to CryptoQuant, the volume of stable holdings on exchanges has repeatedly reached all-time highs this year, rising more than 100% in two months. As mentioned earlier, stablecoin inflows are often seen as a short-term bullish indicator for bitcoin (BTC), suggesting that diverted capital is flowing back into BTC.
Combined with the increase in stablecoin accumulations, several other indicators, such as the CryptoQuant All Exchange Stablecoin Ratio, could point to a further rise in crypto markets. CryptoSir’s technical analyst published on 27. March noted that the ratio had reached its lowest level since November 2020.
Every time this ratio drops to this low level, periods of significant strength for the $BTC are recorded. You’re seeing a significant reduction in BTC trading here, he said. The metric indicates that BTC reserves are divided by all stablecoin reserves available on the exchanges, indicating potential selling pressure.
The newest step in the stablecoin market, payment giant Visa is officially piloting its first USD coin settlement transaction on the Ethereum blockchain. The dollar coin is the second most stable currency pegged to the US dollar after the Tros.
I sense a massive adoption of crypto here, said Ki Yang, CEO of CryptoQuant, about Visa’s move to USDC.
According to CryptoQuant, USDC’s cryptocurrency holdings are currently worth more than $2.2 billion, while its market capitalization is about $11 billion.
ciphertrace,federal reserve stablecoin,bitcoin price,alt coin news,altcoin dogecoin,dogecoin losses,Privacy settings,How Search works,european central bank bitcoin,usdt investigation