Whales have been actively accumulating stablecoin supplies, acquiring about 5% of the major stablecoins' total supply in just three weeks, according to on-chain analytics firm Santiment.
This trend includes significant holdings in Tether (CRYPTO:USDT), USD Coin (CRYPTO:USDC), BUSD (CRYPTO:BUSD), Dai (CRYPTO:DAI), TrueUSD (CRYPTO:TUSD), and Pax Dollar (CRYPTO:USDP).
The surge in whale holdings suggests a strategic move, with possible motivations including new capital injections into the market through stablecoins or a shift from more volatile assets to the relative safety of these fiat-pegged tokens.
While the immediate impact of such shifts can vary, the increase in stablecoin holdings by whales is generally seen as capital poised for eventual investment into cryptocurrencies like Bitcoin (CRYPTO:BTC), indicating potential bullish momentum.
Moreover, alongside the stablecoin accumulation, whales have also been increasing their Bitcoin holdings, reinforcing the optimistic outlook for the cryptocurrency sector.