Non-Empty USDC And USDT Wallets See 13.9% And 15.7% Spike, Why This Is Good For Crypto

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As a researcher with experience in the cryptocurrency market, I find the recent surge in non-empty wallets holding stablecoins such as USDC and USDT to be an interesting development. According to data from Santiment, the number of non-empty wallets holding these stablecoins has grown significantly in 2024, with USDC wallets increasing by 13.9% and USDT wallets growing by 15.7%.

Wallets containing stablecoins like Circle’s USDC and Tether’s USDT have experienced significant growth recently, with their numbers increasing by double digits in a short timeframe. This trend emerges as cryptocurrency prices have rebounded since the beginning of the year. Although this surge could indicate recent selling activity, it also represents a bullish sign for the crypto market based on historical trends.

Non-Empty USDT And USDC Wallets Jump 13.9%

As a crypto investor keeping a close eye on market trends, I’ve noticed an intriguing development according to the data from Santiment’s on-chain analysis. The number of cryptocurrency wallets holding stablecoins like Tether (USDT) and Circle’s USDC has experienced a substantial increase. This growth suggests that investors might be preparing for potential market moves or seeking safer alternatives amidst the volatile crypto landscape.

Based on Santiment’s data analysis, I have observed a noteworthy growth in the number of active USDC and USDT wallets this year. Specifically, there has been a significant surge of 13.9% for USDC wallets and an even more impressive increase of 15.7% for USDT wallets as of 2024.

As a crypto investor, I’ve observed an upward trend in the number of non-zero wallets holding stablecoins like USDT and USDC. This surge in wallets can be attributed to the price recovery of Bitcoin and the overall uptick in the crypto market. At the beginning of the year, there were approximately 4.5 million USDT holders. However, by the time of the report, this number had grown to 5.7 million. Similarly, USDC holders increased from around 1.9 million to over 2.15 million during the same period. In summary, the total number of stablecoin wallets between USDT and USDC now exceeds 7.85 million.

If you’re worried about another pullback in the cryptocurrency market, take heart in the increasing number of active stablecoin wallets. By 2024, the count of non-empty USDCoin wallets has increased by 13.9%, and Tether wallets have grown by an impressive 15.7%.

— Santiment (@santimentfeed) May 23, 2024

Recently, the count of non-zero stablecoin wallets has risen significantly. This surge might indicate some coin sales. Yet, contrary to this assumption, the substantial growth in stablecoin market caps is a clear sign of increasing demand for these digital assets as more coins are being created. In simpler terms, while some people may be selling their stablecoins, many others seem eager to buy them, leading to a paradoxical situation.

Rising Stablecoin Wallets Is Good For Crypto

An increase in the number of non-zero stablecoin wallets is beneficial for the crypto market. During market downturns, these wallets serve as a reserve for investors. As the on-chain tracker indicates, when the market experiences a correction, investors often utilize stablecoins like USDT and USDC to acquire other assets at reduced prices.

There is a noticeable connection between the surge in Bitcoin and cryptocurrency prices throughout the year and the growth of the stablecoin market capitalization. For instance, the market cap of USDT rose from $93 billion in January to over $111 billion currently, indicating a 20% increase. Similarly, USDC experienced a significant jump from a $25 billion market cap in January to more than $33 billion in May, representing a 32% expansion for the stablecoin.

As a researcher, I’ve uncovered some intriguing data in the past day. Specifically, approximately $160 million worth of USDC was transferred from the treasury to two unidentified wallets. This significant movement of funds could be indicative of crypto investors preparing to make their next moves within the market.

Non-Empty USDC And USDT Wallets See 13.9% And 15.7% Spike, Why This Is Good For Crypto

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2024-05-23 15:04