CryptoQuant deduces from an increased influx of stickcoins that private investors are investing more again.
In the days leading up to Bitcoin’s recent boom, stablecoins showed unusually high activity
As a reminder: Stablecoins are crypto currencies that achieve their eponymous (value) stability by being linked to an external asset, such as gold or the US dollar. In the crypto markets, stablecoins are often used to buy other cryptocurrencies.
On October 18, shortly before Profit Revolution was able to make a big leap upwards, the inflow of stablecoins on crypto exchanges initially reached a record high of 56,000, before it was even improved to 60,000, as the data from CryptoQuant show. The crypto market researchers looked at the stablecoins USDT on Ethereum, PAX, USDC, TUSD, DAI, SAI, BUSD, HUSD and USDK.
As CryptoQuant CEO Ki Young Ju explained to Cointelegraph, the inflow was unusually high, but the equivalent in US dollars was not outside the norm. Nonetheless, the expert sees this as a sign that investors are currently positive:
„The fact that private investors are currently investing more means that the market situation is turning for the better.“
According to Ju, the high number of wallet addresses and transactions used indicates that the influx of stablecoins comes from many private investors and not from a few large investors. The logic behind his argument is that private investors are moving their stablecoins to crypto exchanges in order to be able to buy Bitcoin with them. From this he in turn derives the good market situation.
Stablecoin publisher Tether also „minted“ 450 million USDT on Tron’s blockchain ( TRX ) yesterday. As CTO Paolo Ardoino explains , the amount was initially only approved, but not yet put into circulation:
“Announcement: USDT 300 million was minted on the Tron network. This transaction is approved but not yet settled, which means that this amount will not go into circulation until the next cycle. „