The CEO of Messari, the blockchain database startup, said that a large amount of crypto capital is waiting on the sidelines and ready to enter the Bitcoin, Ethereum, XRP and altcoin market.
Investors Keep Their Assets On Stablecoin
Messari CEO Ryan Selkis has released new data showing that crypto exchanges are currently holding more than $ 3 billion of stablecoins on behalf of their customers.
This table shows that investors are waiting in a strategic position to re-enter the speculative crypto market. Ryan Selkis explains this situation as follows:
There is a $3 billion stablecoin sitting on the exchanges. If investors completely abandoned crypto money, they would withdraw their money from banks. Instead, they are waiting for suitable opportunities to invest in cryptocurrencies again. There are more funds than ever in the cryptocurrency economy, both in terms of real and market value.
Stablecoins Offer Solutions to Bitcoin (BTC) and Crypto Money Volatility
Stablecoins are digital currencies fixed on traditional assets such as fiat. Designed to have a fixed value, stablecoins offer crypto traders an easy way to escape the high volatility (volatility) of the crypto markets.
In November, Binance Research published a report on the habits of its 69 customers, with assets between $100,000 and $25 million. The survey showed that 96% of these investors use the stablecoin market and Tether (USDT) is by far the most used stabilcoin.
While using alternative options, stable stablecoins supported by exchanges such as USDC (Coinbase, Circle) and BUSD (Binance) seem to attract more attention than fiat-backed competitors.