Cryptocurrency Exchanges Now have $10 Billion Worth of Stablecoin Reserves
As per the latest reports, USD Coin (USDC) and Tether (USDT) have managed to hit new milestones. It has been confirmed that these stablecoins have managed to hit these milestone with respect to exchanges’ accumulation.
One of the cryptocurrency market data providers known as CryptoQuant, the holdings for stablecoins have managed to hit all-time highs on the cryptocurrency exchanges.
As of Sunday, March 28, 2021, the total holdings for altcoins on the cryptocurrency exchanges have now exceeded the $10 billion figure. The firm has also confirmed that the cryptocurrency exchanges now hold 16% of the total market value that the altcoins currently have.
At the time of writing, the total market capitalization of stablecoins in the market amount to $63 billion. This information has also been confirmed by another on-chain cryptocurrency market analyzing firm known as CoinGecko. At present, the total trading volume that all the stablecoins have is around $88 billion.
CryptoQuant has also revealed that since the beginning of the year, the stablecoins have been experiencing all-time highs. The firm has revealed that they have been able to achieve constant all-time highs and are expected to continue growing in the cryptocurrency exchanges.
The firm has revealed that in two months’ time, the holdings of stablecoins on the cryptocurrency exchanges have increased more than 100%.
The cryptocurrency data-analyzing firms have revealed that whenever there is a surge in the price of Bitcoin (BTC), the inflow into the stablecoins also increases. As Bitcoin (BTC) has been constantly increasing in price since the end of 2020, the investors are also making investments in stablecoins.
This is where the surge in the stablecoins is come from and therefore, the cryptocurrency exchanges are also experiencing a surge with respect to funds flowing into the exchanges.
One of the major factors for the adoption and surge in the price of stablecoins is the recent announcement made by Visa. The financial services giant has confirmed that it has now started its official pilots backed by Ethereum blockchain for first settlement transaction in USD Coin.
According to figures, USD Coin currently holds the title for being the second largest stablecoin. It is known to be pegged with the United State dollar and is second only to Tether (USDT).
Once Visa launches its fiat to cryptocurrency service, the adoption level for the altcoins is going to experience an all-time high.
Ki Young, who is the CEO at CryptoQuant has also remarked the recent announcement made by Visa for crypto-adoption. Young stated that he can see that mass adoption from the mainstream institutions will soon be observed all cryptocurrencies as well as stablecoins.
CryptoQuant has revealed that as of now, the holdings that USDC currently have on the cryptocurrency exchanges equals to more than $2.2 billion. As of now, the market capitalization of USDC is around $11 billion.