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.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||66.4%||75||$29 862.92||-4.61%||-1.43%||$568 643 328 349|
|2||ETH||Ethereum predictions||60.8%||77||$2 023.66||-5.68%||-10.04%||$244 470 579 811|
|3||USDT||Tether predictions||94.8%||1||$0.998796||-0.03%||-0.12%||$75 660 930 298|
|4||USDC||USD Coin predictions||94.8%||1||$1.000660||0.04%||0.11%||$52 009 913 428|
|5||BNB||Binance Coin predictions||66.8%||71||$298.01||-4.49%||-0.72%||$48 657 409 926|
|6||XRP||XRP predictions||68.4%||70||$0.422499||-5.56%||-14.29%||$20 424 915 692|
|7||ADA||Cardano predictions||65.6%||68||$0.556880||-6.81%||-9.00%||$18 833 840 942|
|8||SOL||Solana predictions||61.2%||80||$53.68||-8.81%||-15.43%||$18 096 700 330|
|9||BUSD||Binance USD predictions||95.6%||1||$0.999564||-0.09%||-0.13%||$17 990 219 912|
|10||DOGE||Dogecoin predictions||64.8%||76||$0.087841||-5.39%||-16.20%||$11 653 943 120|
|11||DOT||Polkadot predictions||63.2%||77||$10.62||-9.93%||-1.32%||$10 492 669 466|
|12||AVAX||Avalanche predictions||64.8%||79||$32.61||-10.79%||-22.54%||$8 775 405 549|
|13||WBTC||Wrapped Bitcoin predictions||61.6%||75||$29 851.71||-4.50%||-1.83%||$8 478 001 887|
|14||TRX||TRON predictions||72.4%||61||$0.069116||-4.48%||-5.81%||$6 757 528 478|
|15||SHIB||SHIBA INU predictions||64%||78||$0.000012||-7.95%||-16.96%||$6 586 200 152|
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