Stablecoin reserves at global cryptocurrency exchanges hit a record high of $10 billion

Stablecoin holdings on global cryptocurrency exchanges surged to an all-time high of more than $10 billion on March 28, according to market data provider CryptoQuant.

According to CoinGecko, cryptocurrency exchanges currently hold nearly 16% of the total market value of all stablecoins, as the market cap of stablecoins stands at $63 billion at the time of writing. The total trading volume of all stablecoins is estimated to be around $88 billion.

According to data from CryptoQuant, stablecoin holdings on exchanges have been hitting new all-time highs this year, surging more than 100% in two months. As previously reported, stablecoin inflows are often seen as a short-term indicator of bullish action for Bitcoin (BTC), suggesting that sideline capital is flowing back into BTC.

Coupled with the growth in stablecoin accumulation, other indicators such as CryptoQuant’s “All Exchange Stablecoin Ratio” may point to another uptrend in the crypto market. Technical analyst Crypto Prophet pointed out that on March 27, the indicator had reached its lowest level since November 2020.

“Every time this ratio has dropped this low, it has been a strong period for BTC. It can be noticed here that the exchange supply of BTC has decreased significantly.” The metric represents BTC reserves divided by all stablecoin reserves held by exchanges, which indicates potential selling pressure.

The latest stablecoin market milestone came when payment giant Visa officially conducted the first settlement transaction in USD Coin on the Ethereum blockchain. USD Coin is the second-largest stablecoin after Tether and is pegged to the U.S. dollar.

“I smell broad crypto adoption here,” CryptoQuant CEO Ki Young said of Visa’s entry into USDC.

According to CryptoQuant data, USDC currently has more than $2.2 billion in holdings on cryptocurrency exchanges, while its market capitalization is approximately $11 billion.

Sumitomo Mitsui Trust Bank will issue domestic digital securities (ST) within this month

Payment giant Visa announced on the 29th that it will begin using stablecoin (USDC)

Indonesian government opens its own cryptocurrency exchange