Bybit’s USDT reserves soar by 18% as BTC shows signs of local bottom

Cryptocurrency exchange Bybit has released its twelfth proof of reserves, showing a 17.8% increase in USDT holdings.

Crypto investors are showing a growing appetite for stablecoins as crypto exchange Bybit revealed a nearly 18% increase in clients’ Tether (USDT) holdings in its latest proof-of-reserve report. According to the exchange’s report, users’ USDT balances increased by 433 million USDT as of July 10, marking a 17.8% increase from June 6.

The report also noted a dramatic increase in Circle’s USD Coin (USDC), with deposits increasing by over 150 million USDC, a jump of almost 400% since June. In contrast, DAI, the algorithmic stablecoin issued by MakerDAO, saw its holdings drop by 33% during the same period.

Bybit user reserves in stablecoins as of July 10 | Source: Bybit

Meanwhile, traditional cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) saw modest gains of 5.62% and 0.46% respectively, suggesting that investors may be reallocating their liquidity from stablecoins to more volatile crypto assets.

The surge in stablecoin holdings coincides with rising market capitalization in the sector as Bitcoin appears to have reached a local price bottom. CryptoQuant CEO Ki Young Ju noted in a July 17 post on X that stablecoin market capitalization reached an all-time high in early July, with USDT accounting for 70% of the total market.

While Ju acknowledged that current liquidity levels may not significantly impact price movements, he considered the bullish trend to be “noteworthy” given the prevailing market conditions.