Safe cash like Tether (USDT) and USD Coin (USDC) have reached another milestone in terms of accumulation by exchanges.
In accordance with market intelligence provider CryptoQuant, the holdings of cash on international crypto exchanges rose to a brand new all-time high of over $ 10 billion on March 28.
Cryptocurrency exchanges currently hold practically 16% of the total market value of all stable coins in response to CoinGecko. The market cap for stablecoin at the time of writing was $ 63 billion. The full purchase and sales volume of all stable coins is estimated at around 88 billion US dollars.
In accordance with the information from CryptoQuant, the number of stable coin stocks on the exchanges has repeatedly hit an all-time high over these 12 months, increasing more than 100% in two months. As previously reported, steady Bitcoin inflows are sometimes viewed as a short-term indicator of an upward movement in Bitcoin (BTC), suggesting that defaulting capital is shifting back into BTC.
Coupled with rising stablecoin accumulations, another metric similar to CryptoQuant’s All Alternate Stablecoin Ratio could likely lead to an additional upward move within the crypto markets. Technical analyst Crypto Seer was known on March 27 for the metric to hit its lowest level since November 2020.
“Every time this ratio is this low, it marks intervals of serious energy for $ BTC. This is exactly where the numerous decline within the change for BTC is planned, ”he said. The metric indicates the BTC reserves divided by all constant coin reserves held on the exchanges, which means a potential promotional charge.
The latest milestone in the stable coin market is the formal control of the first USD coin settlement transaction on the Ethereum blockchain by Visa. USD Coin is the second largest stable coin pegged to the US greenback after Tether.
“I smell like mass crypto adoption here,” said Ki Younger Ju, CEO of CryptoQuant, of the Visa to USDC transfer. Ju advised Cointelegraph that the current surge in stablecoin stocks on the exchanges could potentially be due to additional US traders entering the market:
“Safe Bitcoin stocks on all exchanges could indicate potential energy purchases. For the past 12 months, the stable coin market has been largely dominated by tether. However, now the market is evenly shared with various stable cash similar to USDC, BUSD, HUSD, etc. This surge in stablecoin stocks resulted from the surge within the USDC, which could indicate that additional US traders are entering the trade. “
In line with CryptoQuant, USDC holdings on crypto exchanges are actually over $ 2.2 billion while market capitalization is around $ 11 billion.