How TUSD’s $1B addition can change the market
- The growing demand for stablecoins led TUSD’s market cap to rise above $3 billion.
- Whales held a ton of stablecoin on exchanges.
According to Santiment, the market cap of TrueUSD [TUSD] grew by an additional $1 billion between 16 and 18 June. The increase in the coin ensured that the total market capitalization of the top six stablecoins reached $126 billion.
Realistic or not, here’s TUSD’s market cap in USDT terms
For TUSD, the milestone signifies its increased relevance in the market. As of December 2022, the stablecoin’s market cap was a little over $815 million.
? #Stablecoins are showing potential of a turnaround after a $1B rise in $TUSD's market cap this weekend. There has been a 15-month gradual decline in the combined market cap of the top 6 stables, and this jump may signal increased #crypto buying power. https://t.co/4HMubAODnd pic.twitter.com/kZbnzxmNA5
— Santiment (@santimentfeed) June 18, 2023
But the increased supply not only indicated a growing demand for stablecoins. But it also reflects the possible readiness for investors to buy more volatile assets, including Bitcoin [BTC] and altcoins.
Does supply mean preparation?
Over the last few months and most of the previous year, the stablecoin market has been afflicted with a fall in market cap. Needless to say, some unfavorable events contributed to this decline as skepticism spread around the ecosystem.
Furthermore, there seems to be chances that a part of the market was preparing to buy the dip. One reason for this is the decline in the supply outside of exchanges.
This metric describes the number of coins kept in non-custodial wallets. When it comes to stablecoins, an increase suggests that participants are wary of accumulating other cryptocurrencies.
So, the decline here means otherwise. This was further proven by the supply held by large-cap addresses. Based on on-chain data, this metric increased.
TUSD whales may be watching
According to Santiment, 59.1 million TUSD has been supplied to Binance in the last seven days. And since the first transfer 1626 days ago, 237,100 coins flowed into the exchange in the last 24 hours.
Furthermore, the increase in TUSD exchange supply seemed to align with the notion that it could be the time to accumulate altcoins. For instance, crypto trader Michaël van de Poppe opined that the depressed state of the coins offered an opportunity.
How much are 1,10,100 TUSDs worth today?
In his YouTube video posted on 17 June, van de Poppe said that the BlackRock filing could impact a market uptick. Also, Asia opening up its market to crypto could spur on the next altcoin uptick. He said:
“We are in a comparable period like the end of 2019. So, this is the phase where you can conclude that this is the point of maximum financial opportunity.”
Additionally, TUSD’s seven-day circulation also increased. This trend infers that many of the coins have been engaged in transactions within the said timeframe.