Yesterday marked a historic day for stablecoins, which experienced the highest number of single-day transfers ever recorded.
This surge in activity comes as institutions begin to inject funds into the crypto market, taking advantage of lower prices to buy the dip.
Cumberland, a major player in the crypto space, received 95 million $USDT from Tether Treasury and deposited it across multiple exchanges including Coinbase, Kraken, OKX, and Forwarder today. Since October 20, 2023, Cumberland has injected a staggering 6.28 billion $USDT into the crypto market.
Institutions have begun to inject funds into the crypto market and buy the dip!#Cumberland received 95M $USDT from #TetherTreasury and deposited it to #Coinbase, #Kraken, #OKX and Forwarder today.#Cumberland has injected 6.28B $USDT into the crypto market since Oct 20, 2023.… pic.twitter.com/sGIlP6E8aV
— Lookonchain (@lookonchain) August 7, 2024
USDC also saw significant activity, with $36 billion in volume, $822 million minted, and $380 million redeemed. This robust performance highlights the resilience of stablecoins under stress, effectively passing a major stress test.
According to Token Terminal, the number of monthly USDC and EURC senders on Base has rapidly grown to approximately 510,000, reflecting increasing adoption and usage.
Yesterday, stablecoins experienced the highest number of single day transfers of all time.
USDC alone saw:
• $36b in volume
• $822m minted
• $380m redeemedStablecoin stress test = passed. pic.twitter.com/m3hFZ3UVWF
— Peter Schroeder (@peterschroederr) August 6, 2024
$USDT Appears To Be The Primary Holding Value Storage
Data from @intotheblock indicates that the holding periods of stablecoins vary significantly, suggesting diverse applications. $USDT, with an average holding period of 252.56 days, appears to be used primarily as a long-term value storage option.
Information from @intotheblock has it that, The duration for which stablecoins are held differs significantly, indicating varied applications among them. $USDT, with an average holding period of 252.56 days, appears to serve as a long-term value storage option.
In contrast,… pic.twitter.com/b4TVneGpsL— /GALTCOIN DADDY 🇹🇹🇳🇬 {A.D}𓃵 (@Altcoin_daddy) August 7, 2024
In contrast, stablecoins like $MKUSD and $PYUSD, with average holding times of 20.38 days and 33.6 days respectively, are predominantly used for transactions. This trend may be due to their relatively recent introduction to the market and the evolving confidence of users in these newer stablecoins.
Distribution, product, and tech.@coinbase has the distribution.@circle has the product.@base has the tech.
Monthly USDC & EURC senders on Base has quickly grown to ~510k.
Base is Circle's fastest growing transport layer at the moment. pic.twitter.com/ihxhZuQ770
— Token Terminal (@tokenterminal) August 6, 2024
Overall, the unprecedented surge in stablecoin transfers and the significant institutional investments signal a robust and evolving market. The differing holding periods among stablecoins further underscore their varied applications and the dynamic nature of the crypto ecosystem.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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