Stablecoin Sharks Hold On To Their Position, As The Supply Increase
While the concerns regarding a centralized financial market are raised, the chances of decentralized finance taking over are growing too. Along with Cryptocurrencies and Central Bank Digital Currencies (CBDCs), Stablecoins too take a chance to meet the market’s demand.
Now, one of the crypto analytics platforms, Santiment, claims that the Sharks or also known as big stablecoin holders have shifted their focus towards holding their positions rather than converting USDC and USDT into Bitcoin, Ethereum, or any other top cryptocurrencies.
These stablecoin sharks are wallets that hold between $10,000 and $100,000 USDC or USDT. Also these sharks are the ones whose actions are taken for research.
#Tether and #USDCoin shark addresses have been accumulating coins as #crypto prices have risen. This accumulation indicates a disbelief in the rally, and a reluctance to buy in, also known as a "wall of worry". Read our short take about #stablecoins. — Santiment (@santimentfeed) August 3, 2022
As per Santiment reports, these investors are the ones who act as a correspondent toward the middle class of the crypto market. This is because on one side these are observed as rich veterans and at the same time also seen as not too rich with huge funds.
Their latest aggressive purchase of stablecoins is a sign of their quest to find consistency in a somewhat devalued cryptocurrency market. This also represents their generally gloomy view.
Stablecoins Supply See A Rise
Regarding stablecoin liquidity in the cryptocurrency market, there have been an increasing number of thoughts and viewpoints lately.
Most experts and analysts are of the opinion that stablecoins have seen an increase in their supply and this is a positive signal for the market. Binance, CEO of CZ believes that stablecoins are like a powder for the crypto market when the situation arises. However, it’s also important to keep note of the stablecoin supply. If the supply increases it will not meet buyers and in turn, there will be a downfall risk.Source