Stablecoins Experience Highest Number of Single-Day Transfers Ever as Institutions Inject Funds into Crypto Market

This surge in activity comes as institutions begin to inject funds into the crypto market, taking advantage of lower prices to buy the dip.

Institutions are injecting funds into the crypto market and buying the dip, according to on-chain data.

For instance, Cumberland received 95 million $USDT from the Tether Treasury and later deposited it into multiple exchanges, including Coinbase, Kraken, OKX, and Forwarder.

As highlighted by Lookonchain, Cumberland has injected a total of 6.28 billion $USDT into the crypto market since October 20, 2023.

Furthermore, USDC saw a volume of $36 billion, with $822 million minted and $380 million redeemed, according to data from Token Terminal.

Highlighting the resilience of stablecoins under stress,彼得·施罗德 (Peter Schroeder) noted that stablecoins have "passed a major stress test."

In related news, data from IntoTheBlock indicates that the holding periods of stablecoins vary significantly, reflecting diverse applications.

While $USDT is used primarily as a long-term value storage option, with an average holding period of 252.56 days, stablecoins like $MKUSD and $PYUSD are predominantly used for transactions, with average holding times of 20.38 days and 33.6 days, respectively.

Institutions Have Begun To Inject Funds Into The Crypto Market And Buy The Dip 🚨

Multiple institutions are injecting funds into the crypto market and buying the dip, according to on-chain data.

For instance, Cumberland received 95M $USDT from the Tether Treasury and later deposited it to Coinbase, Kraken, OKX and Forwarder today.

In total, Cumberland has now injected 6.28B $USDT into the crypto market since Oct 20, 2023. pic.twitter.com/sGIlP6E8aV

— Lookonchain (@lookonchain) August 7, 2024

In other developments, Token Terminal data shows that the number of monthly USDC and EURC senders on Base has rapidly increased to approximately 510,000, indicating growing adoption and usage of the stablecoins within the Base ecosystem.

This trend aligns with Circle's recent statement highlighting Base as its fastest growing transport layer at the moment.

Insiders speculate that Coinbase handles the distribution, Circle provides the product, and Base offers the technology within this scenario.