Cryptocurrency whales holding stablecoins Tether USDT/USD and USD Coin USDC/USD have significantly increased their buying power, hinting at major incoming volatility in the crypto space.
What Happened: According to Santiment Research, on-chain data shows that there has been huge whale activity in stablecoins. Whales holding USDC and UST between $100,000 to $10 million have added 12.1%, and 8.6% stablecoins, respectively, since early August.
See More: How Do Stablecoins Make Money?
Stablecoins are cryptocurrencies designed to have a constant price and are pegged to fiat currency like the dollar.
“Stablecoin accumulation is being shown by crypto whales over the past three months, and there is significantly more buying power by large traders compared to the June bottom. USDT and USDC being accumulated have historically foreshadowed price rises,” Santiment said in a tweet.
Considering the current market cap of $1.01 trillion, it won’t be wrong to speculate that these whales could be heading for a cryptocurrency buying spree.
This comes days after the U.S. Federal Reserve published a report stating that stablecoins pose massive risks to financial stability, and remain vulnerable to liquidity risks.
Price Action: At the time of writing, Bitcoin BTC/USD was trading at $20,382.55, down 2.54% in the last 24 hours. Ethereum ETH/USD at $1,529.88, down 3.40% and Dogecoin DOGE/USD at $0.1063, declined by 9.91%, according to Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
