There has been a significant surge in the total amount of tokens transferred for all stablecoins, indicating potential accumulation activity.
Historically, such spikes do not occur during a price decline but rather after the market has entered a consolidation phase.
Stablecoin Activity Signals Accumulation
According to CryptoQuant’s analysis, the latest pattern suggests that large investors may be absorbing market shocks through over-the-counter transactions. Additionally, an increase in active addresses alongside this movement indicated increased network activity.
As fear sentiment reaches extreme levels, spot accumulation is taking place, which could mean the market is preparing for a potential recovery.
Once this accumulation phase concludes, price movements in the futures market are expected to follow. Given the currently subdued sentiment, CryptoQuant stated that any price increase in the futures market is unlikely to overheat easily.
Instead, a short squeeze could trigger a sharp upward reversal, and end up potentially accelerating price recovery.
This accumulation trend aligns with the broader cryptocurrency market, which is showing minor signs of recovery despite recent volatility.
As per CoinMarketCap’s data, the total market capitalization has risen to $2.67 trillion. Leading digital assets, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Binance Coin (BNB), Solana (SOL), and Cardano (ADA), posted moderate gains on Tuesday.
However, overall trading activity has slowed, with total trading volume dropping by over 27% to $118.71 billion.
Growing Institutional Integration
On the institutional side of things, Bitcoin and Ethereum ETFs remained highly volatile over the past week, with significant net outflows which was indicative of investor wariness. In fact, as of March 11th, spot Bitcoin ETFs and spot Ethereum ETFs saw $371 million and $21.57 million respectively in daily outflows.
Meanwhile, regulatory changes – such as the White House’s crypto-friendly approach and the Office of the Comptroller of the Currency’s (OCC) approval that US banks can now participate in certain cryptocurrency activities, including serving as validators on Proof-of-Stake networks like Ethereum – point to “growing institutional integration.”
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