When stablecoins go to exchanges in large quantities, it is often a sign that institutional investors are getting ready to buy. That has not happened yet, because stablecoins such as USDC mainly move outside the exchange platforms.
94% USDC outside exchanges
CryptoQuant CEO Ki Young Ju shared on October 7 that 94 percent of all USDC is currently off-exchange platforms. A large amount of this is in the hands of traditional financial institutions, he says. “Bitcoin’s next parabolic bull run may begin as large amounts of USDC flow into the exchanges,” said Ki Young Ju.
Somehow it is striking that people keep their stablecoins outside the exchanges. In principle, they are centralized coins, so it does not make sense to keep them in your own wallet. In order to be able to react quickly, it is also much more convenient to keep your gunpowder at a stock exchange platform. Well, the big money apparently doesn’t agree with that.
Competition does it better
Incidentally, USDC’s competition is doing better in this metric. More than 25 percent of all Tether (USDT) is on the exchanges, but Binance USD (BUSD) really takes the cake. Of all Binance USD tokens, 70 percent are on the exchanges, which is probably due to the fact that Binance offers a high return on the stablecoin.
For example, up to a stake of $1,000 in BUSD, you can get a return of 8 percent at Binance. However, the major market leader at the moment still remains Tether, which has around 68 billion tokens in circulation, giving it a market share of 45 percent. Circle’s USDC is in second place, with 31 percent of the market. Binance is slowly but surely coming, with a market cap of $21.6 billion.