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Santiment, a blockchain analytics company, has data showing that whales in the crypto sphere have been rapidly increasing their holdings of stablecoins. They have bought approximately 5% of the major stablecoin supply! Today, let's explore why whales choose to hold a large amount of stablecoins...
When we talk about "whales" here, we mean investors holding at least $5 million in crypto assets! Over time, whales have been accumulating significant amounts of stablecoins. These stablecoins include Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), TrueUSD (TUSD), and Pax Dollar (USDP).
This indicates that they are accumulating more digital assets pegged to fiat currencies. During the same period, the total market capitalization of stablecoins has also been growing, but the growth rate of whales is faster, meaning that newly issued stablecoins are not their only source of accumulation.
This accumulation behavior may have two reasons. Firstly, whales may anticipate more significant funds entering the market through stablecoins. Secondly, they may be adjusting their investment portfolios, selling off volatile assets like Bitcoin in favor of assets pegged to the US dollar for security.
Although the second reason may be seen as a bearish signal for the market, investors choosing to hold stablecoins typically do so because they plan to eventually re-enter (or intend to enter) the realm of volatile markets. Therefore, the supply of stablecoins can be seen as capital ready for market action, especially stablecoins held by whales.
The recent sharp increase in the number of stablecoins held by whales may also suggest that Bitcoin and other assets are accumulating a significant amount of potential "ammunition". |
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Post time 11-4-2024 23:04:19
