Stablecoin reserves on crypto exchanges hit new historic high of $10B

Stablecoins like Tether (USDT) and USD Coin (USDC) have hit one other milestone in phrases of accumulation by exchanges.

According to market information supplier CryptoQuant, stablecoin holdings on world crypto exchanges soared to a new all-time high on March 28, exceeding $10 billion.

Cryptocurrency exchanges at the moment are holding almost 16% of the whole market worth of all stablecoins, with stablecoin market capitalization amounting to $63 billion on the time of writing, in keeping with information from CoinGecko. The complete buying and selling quantity of all stablecoins is estimated at about $88 billion.

Exchange stablecoin reserves. Source: CryptoQuant

According to CryptoQuant information, volumes of stablecoin holdings on exchanges have been repeatedly seeing all-time highs this yr, surging more than 100% in two months. As beforehand reported, stablecoin inflows are often seen as a short-term indicator of bullish motion for Bitcoin (BTC), suggesting that sidelined capital is transferring again into BTC.

Coupled with rising stablecoin accumulations, another metrics like CryptoQuant’s All Exchange Stablecoin Ratio may doubtlessly level towards one other upward transfer in crypto markets. Technical analyst Crypto Seer noted on March 27 that the metric had reached its lowest stage since November 2020.

“Each time this ratio has gone so low is marked by durations of vital energy for $BTC. The vital discount in on alternate provide for BTC will be observed right here,” he stated. The metric indicates BTC reserves divided by all stablecoin reserves held on exchanges, pointing to potential promoting stress.

The newest stablecoin market milestone comes as fee large Visa is formally piloting its first settlement transaction in USD Coin on the Ethereum blockchain. USD Coin is the second-largest stablecoin pegged to the U.S. greenback, following Tether.

“I scent crypto mass adoption right here,” CryptoQuant CEO Ki Young Ju said about Visa’s transfer into USDC. Ju advised Cointelegraph that the new spike in stablecoin holdings on exchanges could possibly be a outcome of extra United States buyers getting into the market:

“Stablecoin holdings throughout all exchanges may point out potential shopping for energy. Since final yr, stablecoin market was largely dominated by Tether, however now the market is evenly shared with different stablecoins like USDC, BUSD, HUSD, and and so forth. This stablecoin holdings surge got here from the rise of USDC, which could point out extra US buyers coming to this business.”

According to CryptoQuant, USDC holdings on crypto exchanges now amount to over $2.2 billion, whereas its market cap is round $11 billion.