Stablecoins
USDT leads the way as stablecoin inflows cross $400M
Stablecoin inflows see a marked rise – what are the different reasons behind this market shift?
- Stablecoin inflows hit over $400 million.
- USDT maintained a dominance in both inflows and outflows.
The movements of stablecoins across the crypto industry serve as a valuable indicator for understanding crypto dynamics. However, there has been a notable shift in the market recently.
What does this shift mean for the sector?
Stablecoin inflows set record
According to data from IntoTheBlock, there was a significant inflow of stablecoins into exchanges on the 26th of January. This marked the highest volume of inflow observed in a considerable period.
AMBCrypto’s examination of CryptoQuant’s volume data showed that January saw more daily volume rise than other months.
On the 2nd of January, the stablecoin inflow into exchanges was over $478 million, ranking as the third-highest in the month.
The top two inflows were on the 2nd of January, with over $673 million, and on the 3rd of January, with $489 million.
Source: CryptoQuant
However, as of the latest update, the trend has shifted, showing more outflows. Notably, at the close of trading on the 30th of January, the total outflow was around $412 million.
This marked the second-highest daily outflow recorded in the month, with the highest outflow being $541 million on the 19th of January.
Similar to the inflow, this daily outflow represented one of the most substantial observed in months.
Analyzing top stablecoins 24-hour flow
AMBCrypto’s analysis of the 24-hour trading volume of stablecoins on CoinMarketCap showed a total volume of around $49 billion.
Also, Tether [USDT] and USD Coin [USDC] had around 90% of the recorded 24-hour volume.
At the time of this writing, the 24-hour trading volume for USDT was over $42 billion, while USDC’s volume was around $6 billion.
USDT dominates stablecoin flows
AMBCrypto also took a look at USDT’s flow via CryptoQuant, which showed that there was substantial inflow on the 26th of January, amounting to over $373 million.
However, the press time trend showed a dominance of outflows, with over $83.4 million observed.
Source: CryptoQuant
What the flows could mean for the market
A rise in stablecoin inflows onto exchanges may suggest that traders and investors are preparing to participate in the market.
It could also indicate a desire to safeguard their funds in a stable form, particularly during periods of uncertainty.
This shift in movement might be interpreted as a sign of caution or preparation for potential market volatility.
Additionally, an increase in stablecoins entering the market could signify increased buying power and potential intentions to establish positions in the cryptocurrency space.
