Since May 2022, the circulation supply of USD Coin (USDC) and Tether (USDT) has increased dramatically. According to the July version of Bank of America’s Global Crypto & Digital Assets research, the recent jump in cryptocurrency exchange outflows and higher inflows into stablecoins reflect market share.
The Most Recent Changes
In that setting, two of the most prominent stablecoins, USD Coin and Tether, had a massive accumulating increase from a dominant category. A stablecoin club with 10,000 to 100,000 tokens (sharks) verified strong acquisition over the last 2-3 weeks. Meanwhile, Bitcoin, for example, has seen some price increases.
Nonetheless, a graph revealed that bulls were hesitant to scoop more. Santiment argued that the buildup reflected doubt in the recent gain as well as a reluctance to buy – Wall of Worry. This shows that the whale in question selected safety to purchasing the dip during the difficult times.
Beware
The growing stablecoin demand triggered the activation of the flagship dealers. Tether, for instance, started minting operations despite some delays, according to WhaleAlert. On August 3, Tether mined another billion USDT. This brought the total to 66.41 billion. Nevertheless, this has contributed to the currency’s $1 peg.
Furthermore, Circle’s stablecoin has maintained strong narratives from the beginning of the year. According to Dune Analytics’ data on stablecoin volume transfer over the last 30 days, USDC has a 52.4% share. Tether’s stake is currently 20.5%.
Most people would interpret the surge in stablecoins as a reluctance to buy additional Bitcoin. Nevertheless, Binance CEO Changpeng Zhao does not appear to agree with such views. He believes that the growing supply of stablecoins bodes well for cryptos (long-term).
The crypto market has shown little price movement recently, with most assets staying around current price levels. After yesterday’s drop, Bitcoin, for example, has recaptured the $23,000 threshold. Bitcoin was trading at $23,148.36 at the time of writing, up 0.29% in the previous day. Analysts believe that the token will struggle to reach fresh highs before reversing its downward trend. Furthermore, for prolonged activities, purchasers should value added uptrends with large volumes.
