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Stablecoins Return to Exchanges

With Bitcoin wavering above the $42K mark, Tether (USDT) is giving promising signals that big moves for crypto may be coming, says Santiment, a cryptocurrency market analysis firm.

The firm noticed two major spikes in USDT wallet activity in the past week. The spikes, as 83K and 74K daily active addresses were recorded, mark the highest levels since last December, Santiment stated. 

The growth of USDT holder activity perfectly coincides with Bitcoin price’s changes, which rose from a $37.8K bottom one day prior to the first USDT spike. The flagship crypto is trades at above $42.5K as of today’s course. 

The increase of assets held on exchanges indicates that market participants are more willing to sell than hold. As stablecoins are typically considered a base currency to hold before allocating funds to more risky digital currencies, the growth of their inflows may be a reflection buyers’ plans to use stablecoins to buy more cryptocurrencies.

Santiment claims that this has historically been perceived as a bullish sign, and encourages crypto traders to keep an eye on the diminishing stagnancy. 

Balances on Exchanges Grow

The balance of the dollar-pegged USDT on crypto exchanges reached over $4.3 billion today, according to data from another crypto market analytics firm, Glassnode. This is still one of the highest numbers since March 1st, when record highs of over $5 billion USDT were seen.

In addition to increased USDT inflows for trading platforms, USD Coin (USDC) balances are also hitting all-time milestones, with more than $2 billion USDC being currently held on crypto exchange addresses, which is more than 20% of the total USDC supply.

stablecoins usdt

Bitcoin’s Price Stabilizes

In the midst of these signals, Bitcoin briefly crossed the $43K level today, climbing by nearly 6% in the past 24 hours. BTC went on to slightly correct, dropping to its current price of $42.5K at the time of writing. However, such levels have not been seen since the early days of March.

Positive sentiment towards BTC’s price growth may be related to expectations for the United States Securities and Exchange Commission (SEC) to approve the first Bitcoin spot ETF.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Simona is a fintech journalist and content editor at DailyCoin Academy, which focuses on educating new crypto investors. She entered the crypto space in early 2018, got burned, but discovered a passion for trading, and now it’s her hobby. Simona covers crypto and blockchain-related topics and takes a deeper look at what lies behind the latest industry trends.