Dollar-pegged USDC tokens are swiftly flowing into exchanges, increasing to nearly $500 million in January.
USDC stablecoins are now flowing into exchange accounts as it has never before, offering a ready supply of purchasing power to crypto investors to add their holdings or buy any price dips.
USDC held in exchange accounts expanded by more than 112% in January to over $900 million, according to data collected by blockchain analytics firm Glassnode. The sharp increase follows current all-time highs for Bitcoin, Ethereum, and DeFi-related governance tokens, showing that buyers can be gearing up for the next leg of the bull market.
USDC was launched in September 2018 as a collaboration among fintech provider Circle and crypto exchange Coinbase and has since become the second-most-used stablecoin, coming after Tether, with a current supply of over 6 billion.
Stablecoins have materialized as a vital part of the DeFi landscape, giving way to denominate loans, interest payments, and other financial metrics in a familiar currency. Holding USDC also provides a quicker way to buy into other cryptocurrencies when the time is right, compared to waiting for fund transfers and purchase orders to make.
USDC held in exchanges also gives greater assurance that buyers will be able to get in on the action in times of high price volatility when Coinbase and other crypto on-ramp services that convert from fiat currency to digital assets that have been infamous for going down at the most inopportune moments.
Whatever caused the surge of USDC on exchanges, one thing is for sure, there is a whole lot more dry powder available to acquire digital assets ready to go now than there was a month before. It is a promising development for those who are hoping to see higher prices for their favorite crypto holding.
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