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On-chain data shows the stablecoins have seen a spike in Active Addresses recently, something that may turn out to be bullish for Bitcoin.
Stablecoins Active Addresses & Volume Have Jumped
In a new post on X, the market intelligence platform IntoTheBlock has talked about the latest trend in the Active Addresses for the various stablecoins in the sector.
The “Active Addresses” here refers to an on-chain metric that keeps track of the total number of addresses becoming involved in transactions on the blockchain every day. The indicator accounts for both senders and receivers.
When the value of this metric goes up, it means the number of users participating in transfers on the blockchain is on the rise. Such a trend suggests the interest in the asset is increasing.
On the other hand, the indicator witnessing a decline implies investors may be paying lower attention to the cryptocurrency as not many of them are becoming active on the network.
Now, here is the chart shared by the analytics firm that shows the trend in the Active Addresses for the different stablecoins over the last few months:
As is visible in the above graph, the Active Addresses has recently observed a sharp increase for the stablecoins, especially USDT and USDC, the two largest tokens of this class.
According to IntoTheBlock, the indicator has now crossed above the 300,000 mark. At the same time as this spike, the Transaction Volume has also registered an uptick, reaching a value of $72 billion.
These two aren’t the only stablecoin-related metrics that have surged recently, as the analytics firm has pointed out in another X post that the total market cap of these fiat-tied tokens has set a new record.
Thus, it would appear that these assets have not only been enjoying an uptick in activity, but also fresh capital inflows. This trend could hold implications for Bitcoin and other cryptocurrencies.
Generally, investors store their capital in the form of stables whenever they want to avoid the volatility associated with BTC and company. These holders are probable to return back to the volatile side eventually, however, as if they wanted to stay away from the sector entirely, they would have just gone with fiat.
As such, the market cap of the stablecoins may be looked at as dry powder waiting on the sidelines for Bitcoin and other coins. With activity related to these coins shooting up recently, it’s possible that the transactions are related to investors swapping their stables to buy the market dip.
That said, there also exists the scenario where the reverse is true; the transactions correspond to investors buying into the stables as they look to exit from the volatile cryptocurrencies.
Bitcoin Price
Bitcoin appears to have retraced some of its latest recovery as its price is back at $77,300.
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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