Portfolio manager and crypto analyst Mati Greenspan says billions of dollars are essentially sitting on the sidelines, ready to move into Bitcoin, Ethereum, XRP and the altcoin market at large.
Greenspan is using data from the crypto research firm Messari, which shows that the total value of all stablecoins is just shy of $6 billion. Stablecoins are digital currencies that are pegged to traditional assets like fiat. They’re designed to maintain a steady value and offer crypto traders an easy way to sidestep the extreme volatility of the crypto markets.
Greenspan’s theory implies that the billions of dollars in the stablecoin market represent traders who have decided to exit their positions in BTC, ETH, XRP and other crypto assets and are waiting for the optimal time to re-enter the market.
Nearly $6 billion worth of stable coins ready to move into bitcoin and the alts at a moments notice. pic.twitter.com/ISvWMSZ5DQ
— Mati (@MatiGreenspan) January 30, 2020
Binance Research released a report in November on the habits of 69 clients with crypto allocations ranging from $100,000 to $25 million.
The report found that 96% of those investors are using the stablecoin market, with Tether (USDT) ranking as the favorite.
[adinserter block="1"]“USDT is the dominant stablecoin with 40.25% usage, holding the top ranking for both Chinese and English survey respondents. USDC, TUSD, PAX are following close behind USDT, and several English survey respondents wrote in BUSD under ‘Others’, reflecting an initial interest by our institutional & VIP clients…
Putting the broader results in line with respective market capitalizations, the overall use for each stablecoin is roughly in line with the rank of its respective market capitalization.”
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Featured Image: Shutterstock/Vink Fan
