As Bitcoin and Ether continue to rise, stablecoins can provide strong indications of the timing and magnitude of the sudden increase.
Stablecoins moving to exchanges are increasing
The recent movements of stablecoins often provide detailed information about market dynamics and can have a more immediate impact and forecast the price trends of cryptocurrencies.
According to on-chain analysis firm Glassnode, the total number of stablecoins on exchange addresses has increased by 5.6% since June 14th. This growth has put an end to the 60% decline that began in December.
The supply of stablecoins on blockchain contracts has increased
As the supply changes, the figure can be positive or negative. When investors acquire more stablecoins, the number increases, indicating a significant area of interest for cryptocurrency investors to monitor.
The net position of stablecoins has consistently remained negative since April 2022, after 20 months of positive results.
The buying power of stablecoin is increasing
The buying power on Stablecoin exchanges has ended the negative trend in the past six months and turned positive. This metric measures the changes in the flow of stablecoin funds to exchanges compared to bitcoin and ether.
The return of the green color indicates that the buying power of stablecoins is increasing.
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