Stablecoin reserves on crypto exchanges hit new historic high of $10B
30 Mar 2021 #Tether
Cryptocurrency exchanges continue accumulating massive amounts of stablecoins like Tether and USDC. Stablecoins like Tether (USDT) and USD Coin (USDC) have hit another milestone in terms of accumulation by exchanges.
According to market data provider CryptoQuant, stablecoin holdings on global crypto exchanges soared to a new all-time high on March 28, exceeding $10 billion.
Cryptocurrency exchanges are now holding nearly 16% of the total market value of all stablecoins, with stablecoin market capitalization amounting to $63 billion at the time of writing, according to data from CoinGecko. The total trading volume of all stablecoins is estimated at about $88 billion.
According to CryptoQuant data, volumes of stablecoin holdings on exchanges have been repeatedly seeing all-time highs this year, surging more than 100% in two months. As previously reported, stablecoin inflows are often seen as a short-term indicator of bullish action for Bitcoin (BTC), suggesting that sidelined capital is moving back into BTC.
Coupled with growing stablecoin accumulations, some other metrics like CryptoQuant’s All Exchange Stablecoin Ratio could potentially point toward another upward move in crypto markets. Technical analyst Crypto Seer noted on March 27 that the metric had reached its lowest level since November 2020.
“Each time this ratio has gone so low is marked by periods of significant strength for $BTC. The significant reduction in on exchange supply for BTC can be noticed here,” he said. The metric indicates BTC reserves divided by all stablecoin reserves held on exchanges, pointing to potential selling pressure.
The latest stablecoin market milestone comes as payment giant Visa is officially piloting its first settlement transaction in USD Coin on the Ethereum blockchain. USD Coin is the second-largest stablecoin pegged to the U.S. dollar, following Tether.
“I smell crypto mass adoption here,” CryptoQuant CEO Ki Young Ju said about Visa’s move into USDC. Ju told Cointelegraph that the new spike in stablecoin holdings on exchanges could be a result of more United States investors entering the market: "Stablecoin holdings across all exchanges could indicate potential buying power. Since last year, stablecoin market was mostly dominated by Tether, but now the market is evenly shared with other stablecoins like USDC, BUSD, HUSD, and etc. This stablecoin holdings surge came from the rise of USDC, which might indicate more US investors coming to this industry."
According to CryptoQuant, USDC holdings on crypto exchanges now amount to over $2.2 billion, while its market cap is around $11 billion.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | Volume 24h | |
| 1 |  BTC |
Bitcoin predictions | 82.8% | 27 | $42 435.30 | -3.82% | -10.67% | $798 843 453 346 | $41 875 933 869 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 72.8% | 49 | $2 898.43 | -7.49% | -16.63% | $341 018 107 532 | $25 119 846 328 | |
| 3 |  ADA |
Cardano predictions | 64.8% | 78 | $2.23 | -0.57% | -6.34% | $71 411 624 055 | $5 734 484 720 | |
| 4 |  USDT |
Tether predictions | 92.8% | 1 | $1.001440 | 0.09% | 0.11% | $68 691 485 942 | $92 416 325 974 | |
| 5 |  BNB |
Binance Coin predictions | 63.2% | 78 | $352.49 | -7.00% | -14.45% | $59 266 206 180 | $2 064 251 017 | |
| 6 |  XRP |
XRP predictions | 73.2% | 48 | $0.932568 | -6.42% | -12.98% | $43 567 385 538 | $4 641 985 825 | |
| 7 |  SOL |
Solana predictions | 60.4% | 83 | $139.49 | -5.82% | -1.32% | $41 467 489 552 | $4 041 527 553 | |
| 8 |  USDC |
USD Coin predictions | 94.8% | 1 | $1.000761 | 0.07% | 0.05% | $30 432 510 822 | $3 991 490 878 | |
| 9 |  DOT |
Polkadot predictions | 66% | 74 | $30.77 | -2.94% | -9.08% | $30 391 187 124 | $3 785 910 016 | |
| 10 |  DOGE |
Dogecoin predictions | 62.8% | 78 | $0.208918 | -6.33% | -14.44% | $27 455 953 723 | $2 219 973 271 | |
| 11 |  AVAX |
Avalanche predictions | 61.2% | 82 | $73.45 | -4.25% | 12.05% | $16 179 548 858 | $2 391 193 014 | |
| 12 |  LUNA |
Terra predictions | 68% | 61 | $34.85 | -2.03% | -0.58% | $13 942 018 660 | $2 307 928 114 | |
| 13 |  BUSD |
Binance USD predictions | 91.2% | 1 | $1.000668 | 0.05% | 0.05% | $13 477 216 401 | $6 991 450 944 | |
| 14 |  UNI |
UniSwap predictions | 62% | 74 | $19.64 | -8.12% | -20.80% | $12 010 497 802 | $461 226 982 | |
| 15 |  LINK |
Chainlink predictions | 70.4% | 64 | $22.80 | -7.36% | -19.93% | $10 361 191 269 | $1 641 630 892 |
