In the midst of renewed upward movement in cryptocurrency markets, stablecoins like USDT are flooding exchanges to hit new all-time highs in terms of distribution.
According to market data provider CryptoQuant, on January 28, the stock of stablecoins on global crypto exchanges hit a completely new high, peaking at $ 4.7 billion.
This amount represents the majority of the total stablecoin market value, which is estimated at around $ 35.2 billion at the time of writing, according to CoinGecko. The total trading volume of all stacked coins is currently estimated at around $ 111 billion, with Tether (USDT) alone accounting for $ 103 billion of that size.
With the stocks of stablecoins on cryptocurrency exchanges hitting a whole new high, it seems that the number of incoming stablecoin transactions is also growing at the time of writing. On January 28, the number of stablecoin transactions rose to nearly 33,000, up from 30,000 on January 27.
Huge stable currency flows are often seen as a short-term incentive for bitcoin, indicating that margin capital is returning to bitcoin. In particular, stack coins pegged to fiat currencies such as USDT are becoming an increasingly useful tool for traders to make deposits on cryptocurrency exchanges so that they can easily buy and sell bitcoins for millions of dollars. Thus, an increase in the distribution of stablecoins on cryptocurrency exchanges may be associated with an increase in purchasing power.
As Cointelegraph previously reported, the start of the Bitcoin rally in October 2020 was driven by an increase in stable currency flows to stock exchanges.
At the time of publication, there is a noticeable upward trend in the cryptocurrency markets, with most of the top ten currencies showing significant gains in market value and bitcoin yields in excess of $ 32,000.