In the ever-growing landscape of cryptocurrencies, a curious trend has caught the attention of analysts and investors alike. Santiment, a prominent analytics firm, recently tweeted about the behavior of active dolphin and shark wallets containing Tether and USDCoin, the two most popular stablecoins in the market. The firm observed a notable lack of conversion attempts into other crypto assets among these stablecoin holders.
Santiment’s keen insight report, titled “Stablecoin Reactions to Market Shifts: a User Behavior Indicator,” dives deep into the activity of a specific subset of stablecoin holders – those maintaining balances ranging from $10,000 to $100,000.
Often referred to as “dolphins” or “sharks,” these users have remained reluctant to shift their stablecoins into other assets over the past week. Such behavior, interpreted positively, suggests market stability, but further investigation is needed to draw concrete conclusions.
The burning question remains: will these “dolphin” and “shark” holders view the current fallen prices as an opportunity to “buy the dip,” or will they err on the side of caution and “abandon ship” in the face of growing market uncertainty?
However, seasoned investors know that basing decisions on a single parameter can be risky, as market trends are multifaceted. Santiment emphasizes considering diverse indicators and parameters for a comprehensive investment strategy.
Tether’s Rising Market Cap Despite Lackluster Volume
Meanwhile, Kaiko, a research firm, released its report on the market performance. Surprisingly, Tether’s market cap continued to rise, reaching an all-time high of over $83 billion in early June.
The increase in USDT issuance was largely attributed to rising demand for Tron, which offers lower fees than Ethereum. However, it is puzzling that over 60% of USDT’s supply is on Tron, with less than 40% on Ethereum, despite the latter’s dominance in on-chain crypto activity.
Interestingly, while Tether’s market cap increased significantly, stablecoin’s total market capitalization declined for the fifth consecutive quarter in Q2. BUSD and USDC were the primary drivers of this decline.
Additionally, stablecoin trading activity on both CEXs and DEXs remained lackluster during the past few months, with only TUSD bucking the trend. Binance’s zero-fee trading promotions for several TUSD pairs caused a volume surge, but the collapse of technology partner Prime Trust later affected its market share.
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