Digital assets are offloading from exchanges and finding their way into cold wallets as the bearish movement in the cryptocurrency market intensifies. However, the influx of Bitfinex stablecoins is quite different. on-chain data Provider Glassnode Tether (USDT) exchange holdings hit a new all-time high on November 29, surpassing $11 billion.
This amount represents a large portion of USDT shares held on major cryptocurrency exchanges, estimated at around $18 billion at the time of this writing. Total stablecoin exchange holdings are 60% of total supply, with nearly $30 billion of Tether lying in cold wallets. The Binance exchange also held a significant amount of his USDT, around $5.5 billion, but he decided to exchange 50% of the amount for BUSD.
The current crypto market turmoil has left a negative impact on the prices of all stablecoins except Binance USD. USDT, USDC, GUSD and DAI have depreciated 1-2% from the dollar rate, indicating growing fear and uncertainty.
Binance Dollar (BUSD) has remained strong throughout the turmoil, with a total of $20 billion held across all exchanges, according to data analyzed by Cryptoslate. Binance holds almost all of his $20 billion and Crypto.com holds his $50 million of his total BUSD supply.
Analysts see the influx of stablecoins as a catalyst for near-term cryptocurrency prices. Bitfinex stablecoin inflows show capital is returning to exchanges as crypto users scalp the internet to find safe exchanges to trade their funds. There is a possibility that
Stablecoins such as Binance Dollar (BUSD) and Tether (USDT) have emerged as convenient trading tools for depositing funds on digital asset exchanges. An increase in the amount of a particular stablecoin on an exchange therefore reflects an increase in the purchasing power of its users.
Crypto.com’s BUSD holdings recorded a dramatic rise in November, as shown in the Glassnode data below. This shows that the wallet is committed to growing its order book exponentially amid the FTX decline.