On-chain data indicates that stablecoins have recently experienced a surge in Active Addresses, which could be a bullish signal for Bitcoin.
Active Addresses & Volume of Stablecoins Have Increased
In a recent update on X, the market intelligence platform IntoTheBlock highlighted the latest trend regarding Active Addresses for various stablecoins in the market.
The term “Active Addresses” refers to an on-chain metric that tracks the total number of addresses engaging in transactions on the blockchain each day, encompassing both senders and receivers.
An increase in this metric suggests that more users are participating in blockchain transfers, signaling growing interest in the assets.
Here is the chart provided by the analytics firm illustrating the trend of Active Addresses for various stablecoins over the past few months:
The chart shows a notable increase in Active Addresses for stablecoins, particularly USDT and USDC, which are the two largest tokens in this category.
According to IntoTheBlock, the Active Addresses metric has surpassed the 300,000 threshold. Along with this rise, the Transaction Volume has also increased, reaching $72 billion.
These metrics aren’t the only ones related to stablecoins that have seen significant growth recently. The analytics firm also noted in another post on X that the total market cap for these fiat-backed tokens has achieved a new high.
This indicates that stablecoins are not only experiencing increased activity but also attracting fresh capital. Such trends could have significant implications for Bitcoin and other cryptocurrencies.
Typically, investors prefer to hold their capital in stablecoins when looking to avoid the volatility associated with assets like BTC. However, these holders are likely to transition back into more volatile assets eventually; if they wanted to completely exit the crypto market, they would have simply opted for fiat.
Therefore, the market cap of stablecoins can be seen as dry powder waiting on the sidelines for Bitcoin and other cryptocurrencies. With the recent spike in activity related to these coins, it’s plausible that transactions are driven by investors swapping stablecoins to capitalize on the market dip.
Nevertheless, an alternative scenario is also possible, where these transactions represent investors converting their volatile holdings into stablecoins as they seek to exit the more unstable cryptocurrencies.
Bitcoin Price
Currently, Bitcoin appears to have retraced some gains from its recent recovery, with its price hovering around $77,300.
