Circulating Supply of Tether [USDT] and dollar coins [USDC] seen one A sharp decline From May 2022.
in its July edition Global Cryptocurrencies and Digital Assets In the report, Bank of America concluded that the recent increase in cryptocurrency outflows from exchanges and Net inflows imply “bullish” market momentum.
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Having said that, the two largest stablecoins, Tether and USD Coin, saw huge accumulations from the dominant group. A specific group of stablecoin holders (between 10k and 100k), also known as sharks, have shown strong accumulation over the past two or three weeks.
On the other hand, the price action of BTC, for example, has indeed increased. However, according to the chart, the bulls are in no rush to gain more. Comparing the two scenarios, analyst firm Santiment assertion,
“This buildup indicates skepticism about the rally, and a reluctance to buy, also known as the ‘Wall of Worry’.”
It also shows that during turbulent times, the aforementioned whales seek stability rather than buy cryptocurrency dips.
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With so much demand for stablecoins, both flagship representatives have been busy. For example, Tether has resumed its minting process despite some hiccups, as reported by WhaleAlert.
On August 3, Tether minted another $1 billion. Thus, the total amounted to 66.41 billion. While doing so, it even maintained its $1 peg to the U.S. dollar.
— Whale Alert (@whale_alert) August 3, 2022
Moving on, Circle’s stablecoin has been telling an impressive story since the beginning of the year.
According to Dune analysis, among the stablecoin transfers in the past 30 days, USDC hold accounting for 52.4%. Tether only has a 20.5% share.
Many will now see the rise in stablecoins as a reluctance to buy more BTC. But Binance CEO Changpeng Zhao doesn’t seem to hold the same view.According to him, the growth of stablecoin supply is bullish Long-term use in cryptocurrencies.