Whales Stablecoin Holding Drop to Its Lowest


As the cryptocurrency market rebounded from its most recent crash, reports claim that the stablecoin inflow and exchange reserves have decreased dramatically. However, the stablecoin holding in the whale wallet has also decreased to its lowest level.

According to Glassnode’s research, USDC, the second-largest stablecoin in the world, has experienced a sharp decline in exchange deposits. Exchange deposits (7d MA) for the USDC decreased to 138.25, a 17-month low. On March 23, 2021, a low of 138.81 over the previous 17 months was noted.

Another update from Glassnode showed that the percentage of USDC’s supply held by the top 1% of wallet addresses fell to a 22-month low of 87.66%. On August 20, 2022, a 22-month low of 87.66% was recorded.

The amount of USDC exchange inflows (7d MA) was also reported to have fallen to an 11-month low. The value has dropped to $11.13 million. On February 16, 2022, however, the most recent 11-month low of $11.28 million was recorded. The experts claim that the exchange’s reserves and inflows for USDT, USDC, BUSD, and DAI are all declining. They imply that the market now has low purchasing power.

What does this mean for the market?

The most noticeable decline was in USDC. The stablecoin’s growth outperformed that of the already-established USDT in the first half of 2022. When the price of Bitcoin (BTC) dropped to a 25k–28k range in May, its reserve on Spot Exchange reached a high of $1.9 billion. Later, as BTC’s price fell to the 19K level, the figures increased to $1.3 billion in June. But as of right now, it is 268 million.

This raises the probability that the whales and major institutions sold off their USDC holdings in order to buy more BTC when prices were low. The reserve exchange for the remaining stablecoins, it was added, has not experienced a significant increase over the last eight months.

Beginning in 2022, USDC had a market share of 25.8% compared to 47.5% for USDT. USDT and USDC currently hold 43.8% and 36.3% correspondingly of the market share. The USD coin has been gradually gaining ground as the Terra led to collapse in May while the Tether saw de-pegging.

Was this writing helpful?

Source link

Related Articles