A recent report published by Santiment, a popular market analyst firm, revealed that the overall market cap of stablecoins has steadily declined for the past 15 months. However, amidst this decline, a notable trend has emerged among the major holders of the top stablecoins.
According to a tweet by Santiment, a concerning trend is emerging in the stablecoin market, as whales and sharks increase their control while the overall market cap declines:
😟 Worrying news has been looming this week regarding several assets that are at risk of disappearing from #Binance & #Coinbase due to the #SEC lawsuits. Our latest community insight looks at how sentiment has shifted & the growing $LINK network activity. https://t.co/ZpEh6dA9vC pic.twitter.com/TL3ptq81kC
— Santiment (@santimentfeed) June 7, 2023
The report highlighted that the sharks and whales holding the cryptocurrencies like Tether (USDT), USD Coin (USDC), Dai (DAI), Binance USD (BUSD), and TrueUSD (TUSD) are currently holding a higher ratio of the supply than they have for quite some time. This indicates that these influential players in the cryptocurrency market are maintaining their positions and not cashing out of crypto altogether.
The data presented in the report showed that large holders of Tether are currently holding over 40% of the supply, marking their highest amount since November 2021. Similarly, sharks and whales holding USD Coin and DAI also hold above 37% and just under 40% of the supply, respectively, reaching their largest amounts in recent months.
This accumulation of stablecoins by major players has been relatively consistent and sustained over time. The report emphasized that no significant outliers or sudden major movements have been observed in terms of stablecoin holdings. Such stability in the holdings suggests that these influential investors are biding their time, waiting for the opportune moment to reenter the market.
Moreover, the report indicated that there have been no substantial movements of dormant stablecoins in recent weeks. Typically, a decrease in an asset’s mean dollar invested age signifies an imminent transfer of older addresses, which often triggers market activity, including significant purchases of Bitcoin and altcoins. However, the recent data shows no such explosive movement as witnessed in mid-March, which ignited the long bull rally.
While the overall stablecoin market cap might be experiencing a decline in recent times, it is important to note that whales and sharks are not responsible for this downward trend. Their sustained holdings indicate that these key stakeholders still possess the power to boost the crypto market whenever they deem it optimal.
As the crypto market continues to evolve and adapt, monitoring the behavior and actions of influential players becomes crucial. Santiment’s latest report provides valuable insights into the stablecoin market and the activities of major holders, shedding light on the dynamics that shape the cryptocurrency landscape.
Disclaimer: The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations regarding any individual, security, or investment product.
