Blockchain analytics platform Santiment says that huge amounts of stablecoin Tether (USDT) are returning to crypto exchanges, which is often a bullish signal.
The analytics platform says that the amount of USDT on exchanges has reached a level last seen in March 2023, giving a boost to the “buying power” of crypto investors.
“The $9.99 billion worth of Tether sitting on exchanges is the highest level of buying power for crypto’s top stablecoin in approximately seven months. Since June 13th, these exchanges have seen a 40% increase in available USDT.”
Looking at the firm’s chart, USDT had a peak high of $16.96 billion on exchanges in August 2022, which declined to a low of $7.12 billion in June 2023, a more than 58% decrease.
The firm also says that Ethereum (ETH) appears setting the stage for a big move on the upside as bearish sentiment rises.
“Ethereum has dropped to $1,570, and crypto’s number two market cap asset has become an increasingly polarizing topic. Currently at its lowest fee levels of 2023, traders are growing impatient. Rising bearish sentiment is a good sign of an impending turnaround.”
According to Santiment, Ethereum’s social dominance indicator, a measure of discussions in crypto media that refer to the asset, is also flashing bullishness with ETH discussions on platforms increasing to a level last seen in February 2023.
Ethereum is trading for $1,578 at time of writing, down 0.9% in the last 24 hours.
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