Cryptocurrency markets are currently seeing an “encouraging trend of whales moving stablecoins to exchanges,” with data showing that at least seven different deposits entered leading cryptocurrency exchange Binance in the last 24-hour period.
According to data from on-chain analytics firm Santiment, at least one of these deposits was worth $50 million, equivalent to 2.33% of the total supply of the First Digital USD (FDUSD) stablecoin. These deposits came partly in a bid to farm the Bioprotocol ($BIO) alt coin launch on the Binance launchpool.
Per the firm, whenever there is a new launchpool project on the leading exchange, a wave of stablecoins and BNB flock to the platform to farm the launch. Nevertheless, growing stablecoin reserves on exchanges suggest whales are “gearing up for some purchasing, which can push up prices market-wide.”
A growing amount of stablecoin deposits on a cryptocurrency exchange suggests that traders are more readily available to take advantage of opportunities in the cryptocurrency space and are ready to add to their positions.
The rise comes at a time in which bitcoin reserves held on leading cryptocurrency exchange Binance have dwindled to levels that hadn’t been seen since January of this year, raising prospects of a potential 90% BTC price rise as witnessed earlier this year, when reserves dropped to these levels.
According to analysis published by CryptoQuant contributor Darkfrost, Binance’s bitcoin reserves have fallen to 570,000 BTC in a drawdown that resembles one seen earlier this year, before the price of the flagship cryptocurrency surged to near $70,000 in March.
The firm’s data shows that as reserves on Binance dropped to around 564,000 BTC earlier this month, the price of the flagship cryptocurrency rose to surpass the $100,000 mark for the first time ever, before reserves started moving up slightly and BTC’s price dipped.
Per Darkfrost, the lower reserves on Binance suggest “that investors are confident in bitcoin’s long-term prospects, opting to withdraw their holdings from the exchange rather than keeping them there for selling in the short term.”
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