ERC-20 stablecoin users sent $9.3b to Binance, Coinbase

Ethereum stablecoin holders transferred billions of dollars to centralized exchanges following the results of the 2024 US presidential election.

After Donald Trump was declared the winner, Binance and Coinbase received the second largest tranche of Ethereum stablecoin deposits in crypto history. According to CryptoQuant analyst, users transferred approximately $4.3 billion to Binance, while Coinbase received approximately $3.4 billion; this brings the total to $9.3 billion from ERC-20 stablecoin transfers on November 6.

Large stablecoin inflows have historically signaled bullish moves for cryptocurrencies and decentralized finance. Similar large-scale deposits in late 2020 contributed to rising token valuations as users allocated capital.

Stablecoins are cash-like cryptocurrencies that maintain parity with fiat assets such as the US dollar. Tether (USDT) and Circle (USDC), the largest operators in this sector, hold billions of tokens. At the time of writing, there are over $179 billion worth of cryptocurrencies.

Researchers from the US Treasury Department found that 80% of all crypto transactions last year involved fiat-stabilized tokens, highlighting that most digital asset investors traded using crypto-stablecoin pairs.

These CEX ERC-20 stablecoin inflows and the post-election market rally have added to the widespread bullish sentiment. While Bitcoin (BTC) rose to an all-time high of $76,243, the crypto fear and greed index fluctuated in the 70s.

Many of the altcoins and DeFi tokens in the top 100 cryptocurrencies by market cap followed suit as digital asset prices soared with Trump’s re-election, and many see this as a boon for the industry. QCP Capital experts said the market looks set for a continued uptrend into 2025, according to an update shared on Telegram.

The crypto market is on fire as BTC reached an all-time high of 75K after touching the previous record of 73.5K set on March 14. Since then, BTC has mostly traded in a narrow range below 70k. Remarkably, BTC has navigated three election cycles since its inception in 2009; Each of these was followed by rallies to new highs, and prices never returned to pre-election levels.

QCP Capital