The market cap of stablecoins including Tether [USDT], Circle [USDC], DAI, and others grew significantly during the week...
Although on-chain data showed that whales currently hold about 50% of the total stablecoin supply, an increase in the market share stimulated BTC too.In a recent post, the on-chain analytics platform explained how the growth implies a surge in the purchasing power of the broader market. However, it was also quick to point out that the strength of whales’ accumulation of stablecoins has not yet been reflected on the market.Santiment also shared that Bitcoin’s price may rise well above $30,000.
A look at the Stablecoin Supply Ratio underlined that the metric has risen of late. Using the supply of stablecoins including USDC, USDT,The result of this calculation serves as a proxy for the supply/demand mechanics between BTC and USD. At the time of writing, the SSR was 4.78 between the upper band of 4.88 and the lower band of 3.97 of the Bollinger Bands .around Bitcoin’s price is decreasing while buying power is increasing.
Meanwhile, Bitcoin’s 30-day Market Value to Realized Value ratio was 7.25% at press time. The MVRV ratio is defined as an asset’s market cap divided by the realized capitalization. By comparing these values, investors can have an idea about the period of fair value, or undervaluationthat the coin’s recent performance has produced good gains for its holders.
Irrespective of the sentiment in the market, investors may need to thread with caution. Also, the stablecoin supply worth more than $5 million held by whales has only started to move. If the metric spikes like it did around August, then BTC could be worth much more than it currently is.Victor is a full-time journalist at AMBCrypto. Before his sojourn into the world of journalism, he was a “buy the top, sell the bottom” merchant while doubling as a sales funnel copywriter.
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