$9.3M ERC-20 Stablecoin Flows To Exchanges After Election, Is Another Rally Coming?

Donald Trump’s victory led to massive gains not only for digital assets, but also crypto-related stocks and ETF flows on November 6-7, as stakeholders await potential regulatory clarity, developments legislation and planned changes to the Securities and Exchange Commission.

Following the results, the data showed billions of ERC-20 stablecoins flowing on exchanges. This could indicate an expansion of the current manifestation.

ERC-20 stablecoins flood exchanges

According to CryptoQuant’s latest analysis, there has been a significant increase in ERC-20 stablecoin inflows, totaling $9.3 billion, following the results of the recent US presidential election. This is the second largest influx of ERC-20 stablecoins ever recorded.

Among the major exchanges, Binance received roughly $4.3 billion, while Coinbase saw $3.4 billion in deposits, with the rest flowing to smaller platforms. Historically, large inflows like these, especially between September 2020 and February 2021, have been associated with bullish market rallies.

If this pattern holds true, the cryptocurrency market could be poised for another upward move, which could fuel a new wave of market growth.

Many experts believe that the US election results have ushered in a new era of a crypto bull market. QCP Capital’s investor note, for example, expressed confidence that Bitcoin’s positive momentum will continue as the market enters 2025.

Meanwhile, the Coinbase Premium Index, which tracks the price difference between Bitcoin on Coinbase and Binance, recently rose to 0.06, its highest since September 14. Despite a subsequent drop to 0.04, the positive index suggests considerable buying pressure from US traders and institutional investors. . The index suggests that Bitcoin’s bullish momentum may continue and lead to a more stable market rally.

Additionally, the Chicago Mercantile Exchange (CME) saw a significant increase in open interest, with nearly $1.2 billion added in a single day, as K33 head of research Vetle Lunde noted. This marks the largest daily increase in USD open interest ever recorded, far surpassing previous daily gains.

Imminent volatility

Such a significant increase indicates increased market activity and investor interest, driven by increased trading volumes. This increase essentially means an influx of institutional participation.

Short-term volatility, however, remains likely. This was validated by Binance’s Open Interest (OI), which reached $8.3 billion on November 7. This new peak indicated possible market volatility as well as increased liquidation risks. Thinking the same, in a statement to CryptoPotato, Binance Head of Regional Markets Vishal Sacheendran said:

“As more people recognize the value of digital assets for financial independence and portfolio diversification, we expect to see a further surge in interest in the asset class. With adoption expected to grow even further moreover, Bitcoin’s influence on the global financial landscape will expand in the coming future.While market fluctuations may cause some short-term volatility, the prospect of clearer regulatory frameworks has the potential to boost long-term stability and growth in the crypto space.

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