Crypto Giants Embrace Dollar-Pegged Assets in Market Surge
A prominent firm specializing in cryptocurrency analytics has reported a surge in activity among major players in the crypto industry, specifically in their acquisition of dollar-pegged digital assets.
As per information shared on the X social media platform, Santiment has unveiled data indicating a substantial increase of $9.42 billion in the combined market capitalization of the six leading stablecoins. Notable among them are Tether (USDT), UDSC, Dai (DAI), BUSD, TrueUSD (TUSD), and Pax Dollar (PUSD), and this surge has been recorded within a concise four-month timeframe.
💸 Since late September, the constant in #crypto has been encouraging rises in #stablecoin market caps. The combined cap of $USDT, $USDC, $DAI, $BUSD, $TUSD, and $USDP is up $9.42B in 4 months, typically a necessary ingredient for #bullish conditions. https://t.co/34wJLTgWET pic.twitter.com/yYMBc3hsdL
— Santiment (@santimentfeed) January 28, 2024
Of particular interest to the analytics firm is the concurrent rise in market capitalization, coinciding with substantial purchases by large-scale investors holding digital assets valued at over $5 million. The data reveals that these influential investors now control more than half of the total stablecoin supply.
Santiment emphasizes the positive implications of this surge in stablecoin market caps, characterizing it as a pivotal factor that could potentially fuel significant upward movements in the broader cryptocurrency markets.
A closer examination of the behavior of holders of Tether (USDT), the third-largest cryptocurrency by market capitalization, reveals a noteworthy trend. According to Santiment, these holders are actively transferring their dollar-pegged digital assets to various cryptocurrency exchanges. This influx of USDT into exchanges is seen as a key indicator that the cryptocurrency markets are gearing up for a wave of bullish activity.
READ MORE: Bitcoin’s Potential Rally: New Patterns Spark Analyst Interest
Santiment further notes an intriguing development in the return of nearly 4% of Tether’s available supply to exchanges within a relatively short five-week period. This increase in buying power suggests the potential extension of the ongoing mid-term bull cycle, initiated in October.
📊 As #Bitcoin's & #Ethereum's respective supplies have continued moving off exchanges after the #ETF approvals, an interesting development has been #Tether seeing nearly 4% of its available supply come back to exchanges in 5 weeks. The increase in buying power implies
(Cont) 👇 pic.twitter.com/hQrBhZchEu
— Santiment (@santimentfeed) January 30, 2024
The Bitcoin halving event is awaited with anticipation, as it signifies a reduction in the issuance of new BTC to miners by half, potentially influencing market dynamics in the coming months.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
