The number of stablecoins deposited on trading platforms has increased tremendously in the last 24 hours. Data from crypto analytics platform Whale Alert showed that exchanges such as Binance, Bitfinex, Kraken, and FalconX are among the top targets for some of the stablecoins. Deposits of market whales in one of the transfers captured by the analytics firm, up to 65,000,000 USDT worth $64,993,500 was transferred to Bitfinex from an unknown wallet. Binance saw a series of such huge flows in different tranches, including a 50,989,985 BUSD transaction worth $51,015,480 transferred to Binance from Paxos Treasury.
Binance also received two other deposits from Paxos Treasury, including one for BUSD 60,081,112 and another for BUSD 88,888,888. According to warnings from Whale Alert, other exchanges such as FalconX have also seen notable inflows from an unidentified $51,000,000 wallet worth more than $50.9 million.
Permutations of what is going on
Stablecoins are undoubtedly the de facto fiat assets in the digital currency ecosystem, and the movement of these funds can mean that the funds these whales move can be used to take full positions in Bitcoin (BTC) or other altcoins and be invoiced. Chain data does not provide specific information about how these funds are being used; it is also possible that these whales are shifting these funds to meet other debt obligations. A key observation on the whale The Paxos Trust earned more than BUSD 156 million in the last 24 hours, according to the alert platform. Therefore, your attempt to send the funds to Binance may be held for safekeeping by the exchange’s custody program.
While these actions can be explained in many ways, it will be difficult to say whether these rising currency balances will contribute to the industry’s short-term advantage.