Cryptocurrency enthusiasts cannot deny the impact of stablecoins. Unfortunately, it would appear all the major pegged currencies hit strange new lows for exchange activity. That doesn’t offer much hope for the future as the markets continue to struggle across the board.
USDT Deposits Hit A Three-year Low
When the most prominent stablecoin hits a three-year low for exchange deposits, things do not look too great. There is no reason for such a low either, as Tether’s stablecoin is the largest pegged currency by market cap, and the second stablecoin on the market is still way behind. With such outspoken market dominance, one would expect a much better exchange-related performance.
Moreover, one must consider how USDT is issued on all the top blockchains. Some networks are far more efficient than others, giving users more choices to optimize their trading experience. Even so, the overall trend seems to indicate an ongoing decrease in USDT exchange deposits, confirming traders aren’t too interested in buying more crypto at these prices.
It is not entirely abnormal for USDT to see ups and downs in its exchange deposits. However, a three-year low is a bit problematic and a strong indicator that this bearish trend will not relent overnight. Unfortunately, it is not an issue native to Tether’s stablecoin either. BUSD has hit an all-time low exchange flow – noting more withdrawals than deposits – at this crucial time.
When two of the three biggest stablecoins see such a negative trend, one must wonder what is going on. The crypto markets remain under tremendous pressure, and it doesn’t appear things will improve in the coming days either. That said, cryptocurrencies are incredibly resilient, and things can turn around on a dime. However, it doesn’t appear as if USDT and BUSD will play any significant role for now.
USDC Hits A Positive Milestone
There is one silver lining in all of these metrics, as USDC hit a new cumulative transaction volume milestone. The popular stablecoin surpassed $5 trillion in cumulative transaction volume today. It is a prominent development for the second-largest stablecoin by market cap. However, it doesn’t mean USDC will give the markets a fresh capital injection either.
Overall, things look a bit weird where stablecoins are concerned. It is hard to say why things are the way they are or when the momentum will turn bullish. Given the current macroeconomic conditions, it seems unlikely BTC and ETH will see any noteworthy momentum for some time. That is unfortunate, but there isn’t much one can do about it.
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