Large cryptocurrency investors, colloquially known as whales, have been increasingly accumulating stablecoins over the last few weeks, to the point that they now control over half of the combined stablecoin supply.
That’s according to popular on-chain analytics firm Santiment, which has recently noted that since September the stablecoin market has been growing, to the point that the combined market capitalization of leading stablecoins, including Tether’s USDT, Circle’s USDC, Maker’s DAI, and others, has risen by $9.42 billion.
The rise, seen only in four months, was accompanied by significant accumulation from whale wallets controlling over $5 million, as their holdings are now over half of the combined stablecoin supply.
The analytics firm highlights that the rise in stablecoin market caps has bullish implications for crypto, calling it a “necessary ingredient” for the markets to witness more rallies.
Taking a closer look at the activities of USDT owners, Santiment says holders of the third-largest crypto by market cap are sending their dollar-pegged digital assets to exchanges, with these inflows suggesting they’re gearing up to buy into the market in a move that could help drive prices up. Per the firm nearly 4% of USDT’s supply has moved back to cryptocurrency exchanges.
The USDT moving to cryptocurrency exchanges comes at a time in which Bitcoin’s price is set to hit its fifth consecutive month of positive performance, its longest streak since 2021, the year it hits a new all-time high around $69,000.
Bitcoin plunged 21% in 12 days following the debut of spot Bitcoin ETFs in the US in January, while GBTC faced massive outflows after its ETF conversion. The outflow rate has slowed down as BlackRock and Fidelity attract more investors.
Featured image via Unsplash.
