Whales Engage in Rapid Accumulation of Stablecoins

Recent on-chain data reveals that whale entities have swiftly acquired approximately 5% of the total supply of leading stablecoins within the last three weeks.

Azcnews

Recent on-chain data from Santiment, an analytics firm, reveals a significant uptick in whale activity within the stablecoin market. Whales, referring to investors holding substantial sums of at least $5 million in cryptocurrencies, have been actively amassing stablecoin supplies in recent weeks.

Whales Have Been Gobbling Up Stablecoin Supply Recently

The analysis encompasses a range of major stablecoins, including Tether (USDT), USD Coin (USDC), BUSD (BUSD), Dai (DAI), TrueUSD (TUSD), and Pax Dollar (USDP). Tracking the holdings of these large investors over several months, Santiment’s data depicts a notable surge in the percentage of stablecoin supply held by whale entities.

This surge implies a considerable accumulation of fiat-backed tokens by these significant holders. While the total stablecoin market cap has experienced growth during this period, the rate of accumulation by whales has been notably steeper. This suggests that the influx of newly minted tokens isn’t the sole driver behind this accumulation.

In fact, over the past three weeks alone, whales have absorbed more than 5% of the combined supply of major stablecoins. This substantial increase in holdings prompts questions regarding its implications for the broader cryptocurrency sector.

Two primary factors could underpin the growth in whale holdings. Firstly, it’s possible that new substantial capital is entering the market, choosing to utilize stablecoins as an entry point. Alternatively, whales may be reallocating funds from volatile assets like Bitcoin into these more stable, dollar-pegged tokens as a safety measure.

Related: Surge of Bitcoin Exiting Coinbase Exchange Unexpectedly

While the former scenario typically signals bullish sentiment, suggesting a fresh influx of capital, the latter may initially appear bearish. However, investors often use stablecoins as a temporary haven, intending to eventually re-enter the volatile side of the market.

Bitcoin Price Chart

Looks like the price of the asset has gone through a sharp drop over the past day

Consequently, the surge in stablecoin supply, particularly in the hands of whales, may indicate a significant pool of capital poised for deployment into assets like Bitcoin and others. Notably, Santiment also observed robust Bitcoin accumulation by whales, indicating a bullish trend.

This suggests that the recent rise in stablecoin holdings isn’t solely due to capital reshuffling from Bitcoin to stablecoins but rather reflects genuine inflows of capital.

BTC Price

As Bitcoin experiences a sharp downturn, with prices hovering around $65,200, the dynamics within the stablecoin market and whale behavior indicate complex dynamics at play in the broader cryptocurrency landscape.

(1 vote)

5.0/5

(1 vote)
  1. Avatar of Hamza Majid
    Hamza Majid

    Hamza Majid

  2. Avatar of Auwal yusuf
    Auwal yusuf

    Nice

Comments are closed.

Latest

Why Hyperliquid Is Becoming Unstoppable

News | Altcoin | Editor Choice

After the Crash and Scandal: Why Hyperliquid Is Becoming Unstoppable

Amid record-breaking liquidations and a listing scandal that rocked Binance, Hyperliquid has risen as DeFi’s “fortress of steel” — a living testament to the true power of transparency and decentralization.

Bitcoin Faces A Disastrous Year As Uptober Turns Into Floptober

News | Bitcoin | Editor Choice

Bitcoin Faces a Disastrous Year as Uptober Turns into Floptober

Once expected to soar during “Uptober,” Bitcoin has instead stumbled into one of its worst years ever, turning the traditionally bullish month into a gloomy “Floptober.”

Us Seizes $15 Billion In Bitcoin, Hunts Cambodian Tycoon

News | Bitcoin | Editor Choice

US Seizes $15 Billion in Bitcoin, Hunts Cambodian Tycoon in World-Shaking Crypto Fraud Case

Global financial markets are reeling after the US Department of Justice unveiled what it calls the largest cryptocurrency fraud case in history, implicating Cambodian businessman Chen Zhi, chairman of Prince Holding Group.

Investors In Panic, Binance Flooded With Sell Orders

News | Altcoin | Editor Choice

Investors in Panic, Binance Flooded with Sell Orders

After a historic crash that wiped out more than $19 billion in market capitalization within hours, the crypto market is still struggling to recover. Fresh data from CryptoQuant reveals a deepening wave of pessimism across Binance, as traders rush to deposit funds and trigger massive sell orders.

How To Join The Brevis Airdrop

Airdrops | Editor Choice

How to Join the Brevis Airdrop

Join the Brevis Airdrop, the project has successfully raised $7.5 million and is now allowing users to earn Sparks points for upcoming token rewards.

Screenshot 2025 09 10 100533