Two leading stablecoins are seeing increased inflows to centralized exchanges, signaling a potential buying spree.
According to data provided by IntoTheBlock, Tether’s (USDT) foreign exchange net flow increased from a net outflow of $43 million on November 2 to a net inflow of $218 million on November 4.
USDT foreign exchange net flows | Source: IntoTheBlock
Data shows USD Coin (USDC) CEX net flows also shifted from a net outflow of $18.5 million on November 3 to a net inflow of $33.6 million yesterday.
USDC exchange net flows | Source: IntoTheBlock
According to ITB data, the total amount of stablecoins entering crypto exchanges exceeded $250 million on November 4.
Ascension status
Stablecoin inflows generally indicate investors’ eagerness to accumulate Bitcoin (BTC) and altcoins. According to data from CoinGecko, the capitalization of the global crypto market has already begun to rise from its lowest level of $2.33 trillion to $2.39 trillion; This reached $60 billion in less than a day.
Daily whale transactions of at least 100,000 USDT and USDC also increased by 187% and 190%, reaching $6.62 billion and $8.93 billion, respectively, according to ITB data.
Increased whale activity may have the potential to create fear of missing out among market participants, also known as FOMO. This could also signal a potential recovery following a market-wide correction.
Total stablecoin market cap fell from $172 billion to $169 billion last month, according to ITB.
One of the main factors behind the market correction was the start of BTC exchange-traded fund outflows this month. Spot Bitcoin ETFs in the US saw their second-largest outflow on Monday, worth $541.1 million, according to a Crypto.news report. The outflows come after investment products recorded net inflows of more than $5 billion last month.