An increase amount of stablecoin reserves in exchanges shows buyers’ demand of cryptocurrencies
Most cryptocurrency exchanges, such as Binance and Huobi, provide stablecoins’ trading pairs instead of fiat money, for example BTC/USDT and ETH/USDC. Therefore, the inflow of stablecoin can reflect the demand of buyers, as well as the market trend.
According to Cryptoquant, as the price of Bitcoin resumed to US$40,000, the amount of stablecoin reserves in exchanges has increased over 200%, from US$3 billion on 1 January to US$7 billion on 2 February. At the same time, the total market capitalization of Tether(USDT) reaches US$28 billion, followed by Ethereum and Bitcoin. The statistics above clearly showed that buyers have prepared certain stablecoin to buy cryptocurrencies in the future.
Apart from these, the overall market trend suggested that Bitcoin and altcoins are under a bullish momentum, the top 100 cryptocurrencies (rank based on their market capitalization) have at least 10% growth in the past 7 days, in which ADA accounts for an extreme 90% growth. Hence, all the statistics mentioned above can prove that the inflow of stablecoin could be one of the indexes to determine the market trend, and we can predict that the bull market will continue to a large extent.