31 Aug 2021
Stablecoin balance on exchanges reaches new all-time high
The aggregated stablecoin exchange balance has reached a new all-time high of $22.3 billion. Meanwhile, the BTC exchange balance remains low at around 2.5 million.
The stablecoin balance of exchanges has never been higher than now. Currently, $22.3 billion worth of stablecoins sits in exchange balances.
On Jan 1st, the stablecoin balances of the exchanges sat at $3 billion. So far this year, the stablecoin balance of exchanges has risen by $19 billion. While the aggregated stablecoin balance has seen booming growth, the BTC supply on exchanges has remained flat this year, currently sitting at around 2.5 million BTC, near its 3-year low level.
This could suggest that vast amounts of cash are currently available in the market, which could be bullish for bitcoin and other cryptocurrencies onwards.However, it should be noted that the market is getting more and more dependent on stablecoins. They are frequently used as collateral in the bitcoin futures market and in derivatives involving other cryptocurrencies. While the stablecoin supply remains high on exchanges, it could partially be a result of a change in behavior from traders seeking to use stablecoins for crypto exposure.