What do stablecoin holdings tell us about the market?

The 2020/2021 period required large amounts of stablecoin issuances such as USDC and USDT. Which led to increased holdings.

he Period 2020/2021 See a Booming of stablecoins such as US dollar currency From the circuit and USDT from pregnancyWhich led to the issuance of large quantities of it. Since then their possessions have increased. Being a crucial factor in the rise and fork, according to Akashnath S at Ambcrypto.

Santiment noted in the post that Non-empty USDC wallets rise 13.9% and Tether wallets rise 15.7% in 2024. These are impressive numbers and reflect the rapid growth during the recent bull run.

Since December 2019, the total number of non-zero USDT wallets has been rising rapidly for about three years until October 2022. Since then, the metric has seen a rapid decline and a gradual upward trend.

This uptrend accelerated in November 2023, showing that non-cryptocurrency people were feeling more FOMO and more willing to participate in cryptocurrencies than ever before. This is a positive sign for the entire space.

The exchange reserve did not reverse the previous upward trend

During the Period 2020-21The crypto market is rapidly growing It requires printing huge amounts of USDT and other stablecoins.

the The total supply of stablecoins increased from $3.5 billion in February 2020 to $99 billion in March 2022.. since then, It fell to $67 billion due to the market contraction before To start rising again.

the Foreign exchange reserves reflect supply and have increased slowly over the past 12 months. This would need to start accelerating a repeat of the previous uptrend and keep up with the next cycle of rapid growth in cryptocurrency market capitalization, if this scenario plays out.

he Tether’s dominance chart showed some similarities to the previous halving. It is highlighted by the cyan square, and The latter half saw dominance decline for just over two months after the event before rising further in August 2020.

a A decline in USDT dominance indicates bullish price movement across the cryptocurrency marketand A The increasing dominance indicates a flight of investors towards stablecoins and downward pressure on the market.

If the similarity extends We could see a sharp decline in the entire cryptocurrency market in early Julyjust over six weeks later.

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