Amidst increased bearish action on the cryptocurrency market, digital assets are offloading from exchanges and finding their way into cold wallets. However, the case is pretty different for Bitfinex’s stablecoin inflows, which according to onchain data provider Glassnode, Tether (USDT) holdings on the exchange broke a fresh all-time high on Nov.29 and surpased $11 billion.
This amount makes up a large share of the total USDT share held across major cryptocurrency exchanges, which is estimated at approximately $18 billion as of this writing. The total exchange holdings of the stablecoin are 60% of its entire supply, with nearly $30 billion Tether lying across cold wallets. Binance exchange held a significant amount of USDT as well, around $5.5 billion but settled on exchanging 50% of the amount with BUSD.
The current cryptocurrency market turmoil left a negative impact on the price of all stablecoins apart from Binance USD. USDT, USDC, GUSD and DAI de-pegged from the dollar rate by 1-2%, thereby indicating increasing fear and uncertainty.
The Binance dollar (BUSD), whose value has remained solid throughout the turmoil, has a total of $20 billion held across all exchanges, according to data analyzed by Cryptoslate. Binance holds almost the entire $20 billion, with Crypto.com having $50 million of the total BUSD supply.
Analysts regard stablecoin inflows as a short-term cryptocurrency price catalyst. As crypto users scalp the internet to find a safe exchange to trade their funds, Bitfinex’s increase in stablecoin inflow could be a positive indication of capital moving back into the exchange.
Stablecoins such as the Binance dollar (BUSD) and Tether (USDT) have emerged as useful trading tools for depositing funds into digital assets exchanges. Therefore, an increasing volume of any given stablecoin on an exchange reflects an increase in its user’s buying power.
As indicated in the Glassnode data below, BUSD holdings on Crypto.com recorded a dramatic rise in November. This shows that the wallet is committed to growing its order books exponentially amidst the fall of FTX.