More stablecoins find their way to exchanges than ever before where will they be deployed next?
Cryptocurrency exchanges now have more stablecoins on their books than ever before in a fresh sign investors are waiting to buy Bitcoin (BTC) and altcoins.
Data from on-chain analytics platform CryptoQuant shows that this week, exchanges’ total stablecoin reserves passed 27 billion for the first time.
Exchange users herd stablecoins to accounts
After reaching a previous peak in late December, stablecoin reserves tumbled at the start of 2022 as BTC/USD and altcoin markets fell in tandem to multi-month lows.
In recent weeks, however, the trend has reversed, with exchange users sending more to their accounts than at any point in history as of Feb. 9.
As such, liquid capital for potential deployment into cryptocurrencies from exchanges has never been greater.
Exchange stablecoin reserves chart. Source: CryptoQuant
CryptoQuant data analyzes a total of 43 retail and derivatives trading platforms.
Turning to BTC reserves on the firm’s 21 monitored exchanges, the trend is one of continual withdrawals — even after the Bitcoin spot price has almost 50% since week three of January.
As of Feb. 9, exchanges had 2.361 million BTC available.