On June 21, Bitcoin (BTC) broke the $30,000 mark for the first time in two months, marking an important milestone for the volatile cryptocurrency.
As a recent report revealed, this rise contributed to an increase in derivatives trading, an increase in spot trading, and an increase in coins being withdrawn from exchanges.crypto slate alpha insight.
In the week leading up to Bitcoin’s rise, the circulating supply of the TrueUSD stablecoin increased significantly. The data shows that stablecoin supply increased from just over $2 billion on June 14 to $3.13 billion on June 21, marking a massive 56.5% increase.
This surge in stablecoin supply is not an isolated event.
Historical on-chain data reveals patterns of spikes in TUSD’s circulating supply that correlate with similar spikes in the Bitcoin price. This correlation suggests that increased availability of stablecoins may have played a role in fueling Bitcoin’s recent rally.
Binance, one of the world’s largest cryptocurrency exchanges, has historically dominated TUSD’s ERC-20 supply.
Since the beginning of the year, the supply of TUSD on Binance has increased by 63.7%. In the ten days to June 21, supplies increased by 14.5%.
binance introduced On June 21, the same day that Bitcoin rose above $30,000, TUSD spot and margin pair maker fees dropped to zero. This move probably contributed to the increase in BTC/TUSD trading volume. According to Binance data, daily trading volume between the two currencies was just under 72,000 BTC and just under 2.1 billion TUSD on June 23.
While it’s important to note that correlation does not imply causation, the timing of TUSD’s surge in supply and Bitcoin’s rally is interesting. The role of stablecoins in the cryptocurrency market is complex and multifaceted, and the impact of stablecoins on the price volatility of cryptocurrencies such as Bitcoin is a hot topic among analysts.
The look after TUSD’s supply surged ahead of Bitcoin’s $30,000 rally first appeared on CryptoSlate.