Stablecoins remain one of the most crucial assets in all of cryptocurrency. While not everyone sees merit in currencies that cannot gain or lose value, they facilitate the trading of other assets. In addition, both USDT and USDC note some increasing network activity, which may be a sign of things to come.
USDC Exchange Deposits Keep Rising
Even though most crypto enthusiasts are only familiar with USDT, other stablecoins keep abs on. USDC was once a relatively new currency that didn’t note any real traction. Today, it is one of the more popular pegged assets on the market and is supported by dozens of trading platforms. Any activity involving this stablecoin will prove relevant for the broader industry.
Per Glassnode, it appears there is a substantial increase in USDC deposits to exchanges. That is not abnormal among stablecoins and is often a healthy sign of what comes next for the markets. More liquidity in pegged assets can trigger upward price momentum. As USDC is one of the top stablecoins on the market today, this increase can signify more bullish pressure on certain assets.
Even though the seven-day moving average for USDC exchange deposits is just 106.637, it represents a monthly high. Activity involving this currency had decreased significantly in recent weeks. However, it appears users are willing to pick up the pace again. The outcome of this development remains uncertain, but it can certainly spark some interesting debates.
One has to remember USDC is the 6th most valuable cryptocurrency today. It has a market cap of roughly $27 billion and trades across Binance, Kraken, Huobi Global, Uniswap, SushiSwap, and other platforms. A growing amount of exchange deposits for this currency can disrupt market trends, either for better or worse.
USDT Exchange Net Flow Spikes Too
While the USDC developments are intriguing, one shouldn’t overlook what happens to Tether’s USDT either. The overall exchange net flow for USDT is at a three-month high. Exchange net flow depicts both deposits and withdrawals. As this metric rises, there is an increased activity for the most popular of all stablecoins. That can be a good or a bad thing for crypto markets, depending on how the flow leans.
The big question is what both of these trends mean for the markets. More stablecoin activity is usually beneficial, but it can also have the opposite effect. With USDC and USDT both noting new short-term highs in various metrics, it seems safe to assume the bull market will remain in effect. An intriguing development as the weekend is not that far away.