Stablecoin Market Cap Flashing Positive Sign for Crypto Liquidity, According to Analytics Firm IntoTheBlock
Prominent analytics firm IntoTheBlock says the market capitalization of all stablecoins is on the rise, signaling an increase in the buying power of crypto market participants.
The total value of all stablecoins looks primed to rise in December for the second month in a row after declining for a year and a half straight, which IntoTheBlock says is a “positive sign for crypto liquidity.”
IntoTheBlock also looks at Bitcoin’s exchange netflows, which tracks the Bitcoin (BTC) moving in and out of centralized crypto exchanges by subtracting the amount of a coin’s withdrawals from its deposits.
Bitcoin recorded $860 million worth of net inflows into exchanges this week, the largest number in nine months, according to the analytics firm.
A 2021 study published by crypto analytics firm Santiment indicates large upticks in exchange inflows tend to lead to an average price drop of 5% for crypto assets.
Conversely, however, IntoTheBlock notes that whales accumulated 22,000 BTC this week as Bitcoin dropped to $41,000.
Says the firm,
“This highlights their belief in Bitcoin’s long-term value despite market dips.”
Bitcoin is trading at $42,248 at time of writing, a decrease of 1.70% in the last 24 hours.
IntoTheBlock also notes that Ethereum’s (ETH) fees have remained at high levels this week, which has impacted the second-largest crypto asset’s supply.
“With over 35,000 ETH burned in the past seven days, Ethereum maintains its negative net issuance trend that began in early November.”
Ethereum is trading at $2,251 at time of writing, down 1.80% in the past day.
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