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How Binance’s $22 Billion Stablecoin Inflows Powered Bitcoin’s Rally?
On December 14, 2024, the cryptocurrency market witnessed a significant milestone with Bitcoin surpassing the $100K mark. Amidst the frenzy, speculation is rife that Binance’s staggering $22 billion stablecoin inflows played a pivotal role in driving the price rally of the world’s largest cryptocurrency.
According to reports, Binance’s share of the stablecoin market cap has skyrocketed from a paltry 4% in March 2023 to an astonishing 16.8%. Industry experts have been quick to point out that this unprecedented surge is not a coincidence and can be directly attributed to Bitcoin’s meteoric rise.
One expert, Darkfost, emphasized that Binance’s stablecoin inflows far surpass any other exchange. He noted that when OKX witnessed a relatively modest $1.6 billion in stablecoin netflow on December 5, Binance reported an astonishing $13 billion in net inflow. These figures paint a stark picture – Binance is the de facto custodian of the majority of stablecoins.
As a result, analysts are highlighting the crucial role that exchange stablecoin reserves play in influencing crypto prices. A staggering 24.16% of all stablecoins are held by exchanges, rendering them the linchpin of market liquidity. This phenomenon can be attributed to Binance’s sheer scale and its ability to mobilize capital.
In a nutshell, the meteoric rise of Bitcoin is being pinned on Binance’s unparalleled success in attracting stablecoin inflows.
Source: coinpedia.org
