CryptoQuant reportedly shared a report on March 6, where it shared interesting information about the stablecoin tokens pumping into the crypto exchanges.
The analytics firm has revealed that a significant surge has been recorded in the stablecoin inflows in the past week.
The report shows that more and more stablecoins have entered the cryptocurrency exchanges during the week.
The data shows that it was on March 5, when a significant surge was recorded in the stablecoin inflows into the exchanges. This was the highest level of daily stablecoin influx recorded in the exchanges in the running year.
What does the Increased Influx Suggest?
History suggests that as the stablecoin influx continues to surge, it means that the investors might be getting ready to make big moves in the crypto market.
Their decisions are solely based on market movements. If the market trend is bearish, then it means that the investors would go for higher gains.
The buyers tend to invest heavily whenever the overall market situation is bearish. With the trading prices of the assets being in the bearish zone, they become more affordable to buy.
Therefore, the investors buy stablecoins so they can buy as many cryptocurrencies as possible. This is a strong indication of a bullish move in the overall cryptocurrency market.
This indicates that the trend for cryptocurrencies would become bullish in the upcoming days. This way, the investors can start investing in the assets, pushing their trading values higher.
Ethereum is in most demand among Stablecoin Buyers
Glassnode has also shared useful data pertaining to the rising interest of stablecoin investors in Ethereum (ETH).
Most of the stablecoins being acquired by investors are dedicated to purchasing Ethereum. This means that ETH would become one of the most demanded and invested assets as the rallies kick in.
Most importantly, it is the Ethereum blockchain that is witnessing the highest level of stablecoin influx.
According to Glassnode, the total number of wallet addresses receiving the USD Coin (USDC) tokens has reached a one-month low. The report shows that the volume has dropped to 1,544 per hour.
On the other hand, the influx has increased for Tether (USDT). The report shows that the trading volume for USDT has surged to a one-month high in the particular month.
BTC Influx has Dropped as well
The data gathered by Glassnode has shown that the deposits for Bitcoin have declined into the cryptocurrency exchanges as well. They have reportedly hit a monthly low in March so far for Bitcoin.
This is another indication that the investors have started to sell BTC and altcoins at a higher level. It suggests that a bearish trend is in order as the investors have been selling cryptocurrencies.
This is in return increasing the stablecoin accumulation in the cryptocurrency exchanges. It is another notion that the investors are currently bearish about the asset and bullish about the accumulation of stablecoins.
Ethereum’s Share is 60%
Although all major blockchain networks are recording a high influx of stablecoins, it is the Ethereum blockchain that has the lead.
CoinGecko’s data revealed on March 6 that the market share of the Ethereum blockchain with respect to stablecoin influx is 60%.
This goes to prove that the Ethereum blockchain is dominant against all major blockchain networks. Its market share is the highest and other blockchain networks have to bring in very high figures to match its prominence.
Share of Other Blockchains
Apart from the Ethereum blockchain, there are TRON and BNB blockchain networks that are leading the race. The stablecoins influx share recorded for the TRON blockchain is 27%.
Its influx has been reported increased by 5.9% over the weekend.
The market share of the BNB Smart Chain is just 7%, which is significantly lower compared to the Ethereum and TRON market share.