Tether (USDT) Activity Indicates Potential Future Buying Interest Amid Declining Bitcoin and Ethereum Supply on Exchanges: Santiment
Significant Inflows of Leading Stablecoin USDT Return to Crypto Exchanges, Potentially Bullish, Reports Crypto Analytics Firm Santiment
Santiment has observed that 24.1% of the total supply of USDT is currently held on cryptocurrency exchanges, marking the highest level seen since March.
Furthermore, the analytics firm has pointed out a decline in the supply of Bitcoin (BTC) and Ethereum (ETH) on exchanges. This decline suggests that traders are increasingly confident in holding onto these top two cryptocurrencies, opting to "HODL" rather than actively trading.
Santiment has described these concurrent trends as a "golden combination." According to the firm, this combination signifies a promising sign of growing interest in future buying activities within the crypto market.
Furthermore, the analytics firm reports that Bitcoin has experienced its most robust level of unique address activity since April, with an average of 1.1 million BTC addresses actively sending and receiving the cryptocurrency daily.
Despite this increased activity, Santiment suggests that some traders are interpreting the recent Bitcoin price surge as a chance to divest their BTC holdings, capitalizing on a modest profit.
Santiment is closely monitoring a concerning development involving the defunct cryptocurrency exchange, FTX, which may be contemplating the sale of its substantial cryptocurrency holdings. The analytics firm has observed that dormant Ethereum and Binance Coin (BNB) holdings have suddenly become active this week, coinciding with reports of FTX's potential liquidation.
Santiment raises the question: "Does the significant decrease in the average age of Ethereum and Binance Coin tokens in wallets align with the FTX liquidation and sell-off activities that commenced this week?"
Sep 17, 2023