The top two stablecoins are seeing increased inflows into centralized exchanges, suggesting a potential increase in buying.
According to data provided by IntoTheBlock, net Tether (USDT) exchange flows increased from a net outflow of $43 million on November 2 to a net inflow of $218 million on November 4.
The data shows that USD Coin (USDC) net flows on the CEX also changed from a net outflow of $18.5 million on November 3rd to a net inflow of $33.6 million yesterday.
According to ITB, on November 4, the total amount of stablecoins entering cryptocurrency exchanges exceeded the $250 million mark.
Bull case
The influx of stablecoins usually indicates investors’ enthusiasm for accumulating Bitcoin (BTC) and altcoins. According to CoinGecko, the capitalization of the global cryptocurrency market has already begun to grow from a local minimum of $2.33 trillion to $2.39 trillion, reaching $60 billion in less than a day.
Daily whale transactions of at least US$100,000 and US$ also increased by 187% and 190% respectively, reaching US$6.62 billion and US$8.93 billion, according to ITB data.
Increased whale activity could potentially create a fear of missing out, also known as FOMO, among market participants. It could also indicate signs of a potential recovery from the market-wide correction.
According to ITB, the total market capitalization of stablecoins has fallen from $172 billion to $169 billion over the past month.
One of the main factors behind the market correction was the start of an outflow of BTC exchange-traded funds this month. Spot Bitcoin ETFs in the US saw the second-largest outflow of funds at $541.1 million on Monday, according to a report from crypto.news. The outflow comes after investment products recorded net inflows of more than $5 billion last month.
