TL;DR
- Whales accumulate 5.09% of the total supply of stablecoins in the last three weeks, according to Santiment data.
- The combined market capitalization of the top stablecoins exceeds $143 billion, with whales holding 55.37% of the total supply.
- The accumulation could be a result of seeking refuge against market volatility or strategic positioning for future operations.
The recent massive accumulation of stablecoins by large investors has caught the attention of the financial community. According to data provided by the crypto analytics platform Santiment, in the last three weeks, wallets containing at least $5 million in cryptocurrencies have collectively added 5.09% of the total supply of top stablecoins, such as Tether (USDT), USD Coin (USDC), and Binance USD (BUSD).
Such accumulation has driven the combined market capitalization of these stablecoins to its highest level since 2022, surpassing $143 billion. Additionally, whales now hold 55.37% of the total supply of these stablecoins, indicating significant involvement in the market.
🤑 The supply of #stablecoins appear to have been rapidly accumulated by large wallets over the past 3 weeks. Wallets holding at least $5M in #crypto have added a collective 5.09% of the combined supplies of $USDT, $USDC, $BUSD, $DAI, $TUSD, and $USDP. https://t.co/BIR43pbgNO pic.twitter.com/oCGzD8wqEU
— Santiment (@santimentfeed) April 2, 2024
One possible reason behind this trend towards massive accumulation is seeking refuge against market volatility experienced in recent times. Stablecoins, being pegged to fiat currencies like the US dollar, offer price stability compared to other cryptocurrencies, making them an attractive option for investors looking to protect their funds during periods of uncertainty.
What Are Whales Preparing For?
On the other hand, whales might be strategically positioning themselves for future operations. By accumulating stablecoins, they have significant capital available to seize buying opportunities when prices of other cryptocurrencies become more attractive. This gives them the ability to act quickly in the market and make timely investment decisions.
The total market capitalization of stablecoins currently stands at $150.03 billion, with a slight increase of 0.23% in the last 24 hours. Among the top stablecoins, Tether-backed TUSD leads in terms of market participation, with $82 billion, closely followed by USDC with $10.1 billion and DAI with $2.92 billion.
We will have to wait to see what strategy whales decide to implement after compulsive capital accumulation and the consequent effect of their decisions, which ultimately could define the course of retail investors.
