Analysts have named the reason why cryptocurrency whales are accumulating stablecoins

Analysts have named the reason why cryptocurrency whales are accumulating stablecoins

3170
Author: Liam Miller
Subscribe

Analysts have named the reason why cryptocurrency whales are accumulating stablecoins
Santiment: "whales" have accumulated stablecoins while waiting for the right moment to enter the crypto market
The rise in the market capitalization of stablecoins could mean more purchasing power to buy bitcoin or altcoins in the future, analysts said

"Whales are storing their assets in stablecoins in anticipation of a new entry into the crypto market, according to Sentiment. Analysts noted that big players are holding large volumes of stablecoins without withdrawing them into fiat money, indicating they are eager to invest in bitcoin and altcoins again, waiting for the right time.

The combined market capitalization of stablecoins now stands at $122.68 billion, according to Sentiment. There are two different ways to look at this in terms of measuring the state of the markets, experts explain.

The increase in the market capitalization of stablecoins could be a sign that large addresses have made significant profits and are no longer supporting cryptocurrency markets.

On the other hand, an increase in the market capitalization of stablecoins could indicate an increase in purchasing power for Bitcoin or altcoins in the future. If bitcoin and altcoins fall but the market capitalization of stablecoins grows, it increases the likelihood of a market recovery whenever those stablecoins are converted back to BTC and altcoins, experts write.

According to Santiment, 40% of the Tether (USDT) supply is currently held by market "sharks" and "whales" (wallets with balances between $100k and $1 million), which is the highest since November 2021. They also hold 37% of the USD Coin (USDC) supply, the highest since February 2023, and just under 40% of Dai (DAI) cryptocurrency supply, the most since December 2020.

According to analysts, these "pretty staggering numbers" indicate that big holders definitely haven't cashed in on the cryptocurrency. They are simply holding most of their assets in Stablecoin, waiting for the right time to return to the market, experts believe.

Stablecoin's market capitalization may be down a bit, but it doesn't look like it's the "sharks" and "whales" that are causing them to sink, Santiment says. Analysts believe that the key stakeholders with the most power in the markets are still willing to increase their holdings of cryptocurrencies when the time is right.

At the beginning of June, the leading stablecoin USDT regained its capitalization to the maximum values reached at the beginning of last May at $83.2 billion. USDC is now capitalized at $28.4 billion, Binance USD (BUSD) at $4.8 billion, DAI at $4.5 billion, and TrueUSD (TUSD) at $2 billion.

Other news

Clients of Mt. Gox Exchange to Receive $9 Billion in Bitcoin
Ethereum ETF to Launch in the US in July
What is Bitcoin Dominance
Which Countries Hold the Most Bitcoins
In June, German authorities transferred thousands of confiscated bitcoins to exchanges
JPMorgan: Payments to Customers of Bankrupt Crypto Exchanges Will Balance Each Other Out
Trustpilot