Stablecoin Inflows Surge as Crypto Investors Prepare for Market Opportunity
Stablecoins are seemingly pouring into centralized crypto exchanges, which could indicate a forthcoming surge in buying pressure.
On March 6, CryptoQuant disclosed an uptick in stablecoin exchange inflows, with the highest level of the year being recorded on March 5.
This development suggests an increase in the market’s potential purchasing power, even as Bitcoin prices experience a short-term decline.
Typically, stablecoin inflows signal investor readiness to place buy orders at current or lower prices.
According to CoinGecko, Ethereum continues to dominate the stablecoin market, commanding 60% of the total share, while TRON and Binance’s BNB Chain hold 27% and 7%, respectively.
Glassnode, however, reported that the average number of exchange BTC deposits has hit a monthly low, supporting the view that holding and accumulating may be preferable to selling at the moment.
Despite this, the stablecoin ecosystem remains robust, accounting for about 12.7% of the overall crypto market, with a combined capitalization of approximately $136 billion.
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Tether, the market leader, boasts a 52% share with $70 billion in circulation, while Circle’s USD Coin has just under $44 billion in circulating supply, representing 32% of the market share.
Meanwhile, Binance’s BUSD has experienced a 46% drop in circulating supply following regulatory action by the SEC, with only $8.7 billion in circulation, giving it a 6.4% market share.
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.
