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How Binance’s $22B Stablecoin Inflows Powered Bitcoin’s Rally
In the recent past, the crypto market has witnessed a significant surge in Bitcoin’s value, breaking through the psychological barrier of $100K. While many have attributed this price hike to various factors such as institutional investment and mainstream adoption, some analysts argue that Binance’s monumental stablecoin inflows played a crucial role in fueling this rally.
A closer examination of the data reveals that Binance’s share of the stablecoin market cap has increased exponentially over the past few months. The exchange reportedly witnessed at least $22 billion in stablecoin inflows during 2024, surpassing other exchanges such as OKX. This staggering influx of funds into the platform has led to a substantial increase in liquidity, subsequently propelling Bitcoin’s price higher.
Experts suggest that Binance’s massive stablecoin reserves have significantly boosted liquidity across the crypto market, driving up the demand for Bitcoin and consequently its price. The data highlights that at least 16.8% of the total market cap is held by cryptocurrency exchanges like Binance, further emphasizing the impact these entities have on global markets.
In March 2023, Binance’s stablecoin market share stood at a mere 4%, but this figure has skyrocketed to an astonishing 16.8% since then. This dramatic shift underscores the significance of Binance in shaping the cryptocurrency landscape.
The statistics further indicate that Binance’s $22 billion stablecoin inflows have dramatically altered the global liquidity scenario, paving the way for Bitcoin’s meteoric rise.
Source: coinpedia.org
