Bitcoin

Stablecoins went “crazy” in the days leading up to Bitcoin’s recent surge

In the days before the last Bitcoin price surge Stallcoins got mixed up and exhibited largely unprecedented behavior.

Stablecoins – All incoming stablecoin transactions and the number of addresses on all exchanges. Source: CryptoQuant.

On October 18, stablecoins hit an all-time high of 60,000 and 56,000 respectively on exchanges.according to information from CryptoQuant. The data in the middle tracked USDT on Ethereum, PAX, USDC, TUSD, DAI, SAI, BUSD, HUSD and USDK. No exceptional trends were found in the total entry of all stablecoins in dollars.

Stablecoins entries on exchanges. Source: CryptoQuant.

The CEO of CryptoQuant, Ki Young Ju told Cointelegraph that while the inflows may not be very high in terms of dollar value, they represent an upward trend among retail investors.::

“Deposits from more retail investors generally mean that market sentiment is turning bullish.”

Stablecoins went “crazy” in the days leading up to Bitcoin’s recent surge
Stablecoins went “crazy” in the days leading up to Bitcoin’s recent surge

Ju believes that the high number of addresses and transactions in the market suggests that the inputs have come from a large number of retail investors rather than a few large players.. The assumption is that investors will send stable coins to exchanges if they want to convert them into other crypto assets, mostly Bitcoin. Yesterday, Tether spent $ 450 million on the Tron (TRX) network. The company’s CTO, Paolo Ardoino, clarified before the amount has been approved but not spent::

“PSA: $ 300 million inventory replenishment on the Tron network. Please note this is an authorized but unspent transaction. This means this amount will be used as inventory for issuance inquiries for the next period.”

Tether 2020 market capitalization. Source: CoinMarketCap.

Tether’s market capitalization quadrupled in 2020. It started the year at $ 4 billion and rose to $ 16 billion at press time. Meanwhile, Bitcoin balances on major exchanges fell below 2.5 million BTC for the first time in years.

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