• CryptoQuant has reported an increase in stablecoin exchange inflows, measuring the year’s highest level.
• Low BTC inflows have indicated a preference for holding and accumulating.
• Centralized crypto exchanges have been experiencing increased inflows of stablecoins, signaling a potential uptick in buying pressure.
Stablecoin Inflows to Crypto Exchanges: Are Buyers Bullish?
CryptoQuant has reported an increase in stablecoin exchange inflows, reaching the year’s highest level so far. This indicates investors are more likely to hold and accumulate rather than sell at current or lower levels as measured by low Bitcoin (BTC) inflows on centralized crypto exchanges. This could signal a potential uptick in buying pressure despite the recent short-term decline in Bitcoin price.
Stablecoin On-Chain Data Providers Findings
According to recent reports by CryptoQuant, centralized crypto exchanges have been seeing increased stablecoin inflows. Glassnode also noted a new one-month low for USDC at 1,544 for March with regards to unique addresses that received incoming transactions within a given hour. However, February saw USDT achieve a monthly high mean transaction volume even with the average number of exchange BTC deposits being at a monthly low.
Stablecoin Giants Gain Ground at the Expense of Binance and BUSD
CoinGecko reported that Ethereum continues to dominate the stablecoin market with 60% of total share followed closely by TRON (27%) with Binance’s BNB Chain trailing behind with 7%. Stablecoins currently account for approximately 12.7% of the entire crypto market with an estimated capitalization of around $136 billion according to CoinGecko data.
The increasing amount of stablecoins being deposited into centralized crypto exchanges suggests investors‘ confidence is growing despite short-term declines in Bitcoin prices. This renewed faith could be indicative of buyers becoming more bullish amidst market uncertainty as they seek out safe havens such as USDT and USDC during volatile times as well as prepare for possible future gains when markets start recovering again soon enough.