Stable coins like Tether (USDT) and USD Coin (USDC) have reached another milestone in terms of accumulation by exchanges.
According to market data provider CryptoQuant, holdings of stable coins on global crypto exchanges rose to a new all-time high on March 28, exceeding $ 10 billion.
Cryptocurrency exchanges currently hold almost 16% of the total market value of all stablecoins, according to CoinGecko. The market cap for stablecoin at the time of writing was $ 63 billion. The total trading volume of all stablecoins is estimated at around 88 billion US dollars.
According to CryptoQuant data, the volume of stable coin stocks on the exchanges has repeatedly hit an all-time high this year, increasing by more than 100% in two months. As previously reported, stable Bitcoin inflows are often viewed as a short-term indicator of bullish action for Bitcoin (BTC), suggesting that the defaulting capital is moving back into BTC.
Coupled with growing stablecoin accumulations, some other metrics such as CryptoQuant’s All Exchange Stablecoin Ratio could potentially point to further upward movement in the crypto markets. Technical analyst Crypto Seer noted on March 27 that the metric had hit its lowest level since November 2020.
“Every time this ratio is this low, it marks periods of significant strength for $ BTC. Here is the significant decrease in the exchange offer for BTC, ”he said. The metric indicates the BTC reserves divided by all stable coin reserves held on the exchanges, which indicates possible selling pressure.
The latest milestone in the stable coin market comes when payment giant Visa officially controls its first USD Coin settlement transaction on the Ethereum blockchain. USD Coin is the second largest stable coin pegged to the US dollar after Tether.
“I smell like mass crypto adoption here,” said Ki Young Ju, CEO of CryptoQuant, of the move from Visa to USDC. Ju told Cointelegraph that the recent surge in stablecoin stocks on exchanges could be due to more U.S. investors entering the market:
“Stablecoin holdings on all exchanges could indicate potential purchasing power. Since last year, the stablecoin market has been mostly dominated by Tether, but now the market is evenly shared with other stablecoins such as USDC, BUSD, HUSD, etc. This increase in Stablecoin holdings came from the rise in the USDC, which could indicate more US investors are entering the industry. “
According to CryptoQuant, USDC holdings in crypto exchanges are now over $ 2.2 billion, while market cap is around $ 11 billion.