As Binance CEO CZ reported, the anxiety caused by the SEC lawsuits is driving individual investors into a ‘panic mood’. Meanwhile, whales, who are deep-pocketed investors, are looking for a solution in these cryptocurrencies to stay away from market fluctuations.
Crypto whales turn to certain altcoins to secure their holdings
The cryptocurrency market has taken multiple hits by the SEC in the past few days. The US regulator upset two of the leading exchanges with a lawsuit for selling unregistered securities. Now, traders and investors are reacting either by switching to a different exchange or withdrawing cryptocurrency investors altogether. As Binance CEO CZ reported, the fund that came out of the exchange yesterday totaled $392 million.
According to our data, last 24hrs, @Binance net outflow is about $392m.
Our wallet addresses are public. Some 3rd party analytics measure Change in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as "outflow".…
— CZ 🔶 BNB (@cz_binance) June 10, 2023
However, according to a recent report from crypto analytics platform Santiment, a significant number of crypto whales are rushing to certain altcoins for shelter. According to the report, market players have turned to certain stablecoins, including Tether (USDT) and USD Coin, to hedge their holdings.
💲 The overall #stablecoin market cap has steadily declined for about 15 months now. However, the sharks and whales holding $USDT, $USDC, $DAI, $BUSD, & $TUSD are holding a higher ratio of the supply than they have for a while. Read our latest insight. 👇 https://t.co/VkXTDDOhOl pic.twitter.com/bu5mV35TDm
— Santiment (@santimentfeed) June 8, 2023
Santiment also interpreted social volume metrics as a bullish signal, as quoted by Kriptokoin.com.
“More stablecoins mean more power to buy cryptocurrencies in the future”
While the market cap of some of the leading stablecoins peaked in March 2022, Santiment explains that the increase in market capitalization could mean that large addresses are making huge profits and stop supporting the market, as in the previous bull run. Concerning this issue, Santiment cites the following words:
Large addresses can be a complex matter when it comes to stablecoins. We like to look at what stablecoin sharks and whales are doing with their assets at any given time, holding between $100,000 and $10,000,000. For most stablecoin sharks and whales, they appear to be moving in the right direction.
Stablecoin market caps are falling, but it’s not because of big whales
USDT whales in particular have exceeded 40 percent of the retained supply. This fund was the highest since November 2021. Meanwhile, whales going to assets like USD Coin have secured more than 37% of the total supply. On the other hand, the big hands holding Dai are just below the revised 40% supply. This is the highest amount since December 2020.
Santiment describes these numbers as staggering. He also states that these are an indication that whales are not yet monetizing crypto. In fact, these whales wait for the perfect entry point to make a comeback. They hold a significant portion of their assets in the form of stablecoins.
‘Sluggish stablecoin market harbinger of bull’
In the overall picture, Santiment argues that stagnant stablecoins did not act like they did in mid-March, leading to a bull rally later on:
Stablecoin market values may have been dropping a bit lately. But it seems that sharks and whales aren’t sinking them. Therefore, we have encouraging signs that the key stakeholders with the most power in the markets are still ready to boost crypto when the time is right for them.
47008
