Tether Rolling Offer [USDT] And the dollar coin [USDC] saw a big drop Since May 2022.
In the July issue of Global cryptocurrencies and digital assets In the report, Bank of America concluded that the recent surge in cryptocurrency outflows from exchanges and a rise in Net inflows indicate “bullish” market momentum.
However, two of the largest stablecoins, Tether and USD Coin, have seen a massive increase in accumulation from a dominant group. A specific group of stablecoin holders (between 10k and 100k), also known as sharks, showed a massive build-up in the last 2-3 weeks.
On the flip side, BTC for example has seen some increase in price action. However, the bulls, according to the chart, were in no hurry to get more. Comparing both cases, Santiment Analysis Company confirmed,
“This buildup indicates a lack of confidence to rise, an unwillingness to buy, also known as the ‘worry wall’.”
It also shows that during turbulent times, said whales sought stability rather than buying cryptocurrency.
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With such a demand for stablecoins, both major players have been busy. For example, Tether, as reported by WhaleAlert, has resumed minting despite some hiccups.
On August 3, an additional US$1 billion was minted by Tether. This brings the total to 66.41 billion. And while doing so, it maintained its dollar peg for one dollar.
– whale alert (whale_alert) August 3, 2022
Going forward, Circle’s stablecoin has continued to tell impressive stories since the beginning of this year.
According to dune analytics, in stablecoin conversion volume for the last 30 days, USDC He carries by 52.4%. Tether owns only 20.5% stake.
Now, many may consider the rally in the stablecoins to represent a reluctance to buy more bitcoin. But Binance CEO Changpeng Zhao does not seem to share the same opinion. According to him, the growing supply of stablecoins is rising long-term cryptocurrency