Stable coins like Tether (USDT) and USD Coin (USDC) have reached another milestone when it comes to stock market hoarding.
According to market data provider CryptoQuant, stablecoin stocks on global cryptocurrency exchanges hit a new all-time high on March 28, surpassing $ 10 billion.
Cryptocurrencies currently account for roughly 16% of the total market capitalization of all stablecoins, with the stablecoin’s market cap standing at $ 63 billion at the time of writing, according to CoinGecko. The total turnover of all currencies in the stack is estimated to be approximately $ 88 billion.
According to CryptoQuant data, swap holdings of stablecoins have repeatedly reached record highs this year, growing more than 100% in two months. As mentioned earlier, steady currency flows are often seen as a short-term indicator of the bullish movement of Bitcoin (BTC), indicating that the supply capital is returning in bitcoin.
Besides the increased stable trading volumes, some other accounts like CryptoQuent’s “All Exchange Stablecoin Ratio” may signal a new bullish trend in the cryptocurrency markets. Technical analyst Crypto Seer noted on March 27 that the settlement reached its lowest level since November 2020.
“Every time this ratio gets very low, there are periods of significant growth for BTC dollars. Here you can see a significant drop in the bitcoin exchanges.” The measurement shows that BTC reserves are categorized across all stock exchange stablecoin reserves, and indicates potential selling pressures.
Another breakthrough in the stable currency market was that the payment giant Visa officially launched its first US dollar settlement transaction on the Ethereum blockchain. USD Coin is the second largest pegged coin to the US dollar after Tether.
“I can feel the spread of cryptocurrency here,” said CryptoQuant CEO Ki Yang of Visa to move to USDC.
According to CryptoQuant, USDC assets on cryptocurrency exchanges currently exceed $ 2.2 billion, with a market value of around $ 11 billion.