Many traders are taking advantage of the price dip to increase their cryptocurrency holdings.
The cryptocurrency market has suffered tremendous losses since last week after the Federal Reserve announced it would be raising interest rates to curtail rising inflation.
Many traders are converting their cryptocurrency holdings to stablecoins in order to avoid incurring more losses. However, other traders see the recent price dip as an opportunity to get digital currencies for a huge discount.
Based on this, stablecoin deposits across cryptocurrency exchanges globally have continued to skyrocket recently. Several investors, including Justin Sun, the founder and CEO of popular blockchain project Tron, have made significant amounts of stablecoin deposits to cryptocurrency exchanges.
According to crypto media outlet Wu Blockchain, the Tron CEO made a whopping $100 million Tether (USDT) deposit from Aave protocol to world’s largest cryptocurrency exchange by trade volume Binance.
“Just In: The address marked Justin Sun (0x3ddfa8ec3052539b6c9549f12cea2c295cff5296) transferred $100 million USDT from Aave to Binance. @PeckShieldAlert reported it first,” Wu Blockchain reports.
Just In: The address marked Justin Sun (0x3ddfa8ec3052539b6c9549f12cea2c295cff5296) transferred $100 million USDT from Aave to Binance. @PeckShieldAlert reported it first. https://t.co/7w0QxWcwKT
— Wu Blockchain (@WuBlockchain) May 11, 2022
While it is not clear what cryptocurrency Sun will be investing in this time, it is worth noting that the Tron Decentralized Autonomous Organization (DAO) recently followed the steps of El Salvador president Nayib Bukele to buy 500 units of BTC.
With the recently transferred $100 million USDT by the Tron founder, it will not be surprising if Sun decides to bolster the Tron DAO Bitcoin holdings.
Surging Stablecoin Deposits
Aside from Sun’s USDT deposit, the number of stablecoin deposits to cryptocurrency exchanges has also surged tremendously.
Glassnode, a cryptocurrency data tracking service, announced yesterday that USDT deposits from external wallets to exchanges reached a one-month high of 416.719.
? $USDT Number of Exchange Deposits (7d MA) just reached a 1-month high of 416.179
View metric:https://t.co/2H0KYUIFNb pic.twitter.com/DWRqge1PmM
— glassnode alerts (@glassnodealerts) May 10, 2022
Similarly, transaction volume for USD Coin (USDC) also reached an 11-month high of $539.7 million. Glassnode noted that the last time the USDC transaction volume recorded an 11-month high was on January 28, 2022 when $538.49 million worth of USDC was transacted.
? $USDC Transaction Volume (7d MA) just reached a 11-month high of 539,710,684.109 USDC
Previous 11-month high of 538,492,962.129 USDC was observed on 28 January 2022
View metric:https://t.co/m4o45NujLu pic.twitter.com/L3spPnUjqg
— glassnode alerts (@glassnodealerts) May 10, 2022
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
