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.
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.
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.