Digital assets are moving away from exchanges and into cold wallets amid a rise in bearish activity on the cryptocurrency market. The situation with Bitfinex’s stablecoin inflows, however, is quite different. According to onchain data provider Glassnode, the exchange’s Tether (USDT) holdings broke a new record on November 29 and surpassed $11 billion.
This sum accounts for a sizable portion of the total USDT share held by significant cryptocurrency exchanges, which is estimated to be worth around $18 billion at the time of writing. 60% of the stablecoin’s total supply is held by exchanges, with nearly $30 billion of Tether spread across cold wallets.
Binance exchange had over $5.5 billion worth of USDT on hand as well, but decided to trade half of it for BUSD.
With the exception of Binance USD, the present turbulence in the cryptocurrency market has had a detrimental effect on the price of all stablecoins. By de-pegging by 1-2% from the dollar rate, the USDT, USDC, GUSD, and DAI indicate growing anxiety and uncertainty.
Data shows that a total of $20 billion is held across all exchanges in the Binance dollar (BUSD), whose value has held steady throughout the turbulence. Nearly all $20 billion is held by Binance, and $50 million of the total supply of BUSD is held by Crypto.com.
Stablecoin inflows are viewed by analysts as a short-term stimulus for cryptocurrency price growth. Bitfinex’s spike in stablecoin inflow could be a sign that money is returning to the exchange as cryptocurrency users scour the internet for a secure exchange to swap their funds.
Stablecoins like the Binance dollar (BUSD) and Tether (USDT) have become important trading tools for funding deposits into exchanges for digital assets. As a result, a stablecoin’s increased volume on an exchange indicates that its users have more purchasing power.
The Glassnode data below shows that BUSD holdings on Crypto.com had a sharp increase in November. This demonstrates that despite the collapse of FTX, the wallet is devoted to exponentially growing its order books.
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