Large investors in the cryptocurrency market, also known as whales, have been accumulating stablecoins more frequently in recent weeks, to the extent that they now hold more than half of the total supply in the stablecoin market.
According to Santiment, a popular analytics firm, the market capitalization of leading stablecoins, such as Tether’s USDT, Circle’s USDC, and Maker’s DAI, has surged by $9.42 billion since September. This increase has been accompanied by significant accumulation from whale wallets managing over $5 million, which has brought their total holdings to more than half of the combined stablecoin supply.
Santiment notes that this surge in stablecoin market caps has bullish implications for the cryptocurrency market, as it is a necessary component for market rallies.
Analysis of USDT owners’ activities reveals that they are sending a portion of their holdings to cryptocurrency exchanges, which suggests that they are preparing to invest in the market—potentially driving prices up. At the same time, Bitcoin’s price is expected to register its fifth consecutive month of positive performance, which would be its longest streak since 2021—the year it reached a new all-time high around $69,000.
The outflow rate of BlackRock and Fidelity has slowed down as both companies attract more investors.
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