The Crypto market has been experiencing an important change in capital flows, mainly the best-known Stablecoins, marking a significant milestone in the last year and a half.
According to recent data, measured by blockchain data provider Glassnode, they reveal a positive net flow of money into the market through the well-known Stablecoins, tokens pegged to the value of the US dollar such as USDT, USDC, BUSD and DAI.
This turnaround in the supply of the top four stablecoins marks the first time a positive change has been recorded since the collapse of Terra in May 2022.
Starting in 2020, Stablecoins planted their ground and have been a fundamental tool to execute the purchase of cryptocurrencies in general.
The sudden increase in its current supply suggests possible bullish pressure, with investors ready to deploy these funds in the acquisition of crypto assets or their use in derivatives trading operations.
According to Reflexivity Research, this positive change in stablecoin supply indicates greater liquidity on the blockchain, which could be interpreted as an indicator of capital inflow into the cryptocurrency market.
The increase in crypto flows coincide with the growth in the price of Bitcoin
Bitcoin has doubled in value to surpass $35,000 this year, driven largely by Halving 2024 and the expectation of approval by US regulators of an exchange-traded investment fund (ETF) linked to the cryptocurrency.
The Stablecoin market faced difficulties in May 2022 following the collapse of Terra’s LUNA token, resulting in considerable losses for investors and a massive outflow of liquidity.
This incident was followed by bankruptcies in funds, cryptocurrency lenders and the FTX exchange, which generated a crisis of confidence in the sector, taking the Crypto Fear and Greed Indexes to the lowest levels recorded for several weeks.
Currently the Fear and Greed levels have recovered to exceed the expectations of many investors, it is currently above 50% according to CoinStats, which causes some doubts to the most skeptical investors about this BTC rally.
This recent positive change in the supply of Stablecoins suggests a recovery in investor confidence towards the crypto market and is combined with the objective of greater global adoption and new cyclical flows in the asset.