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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Whales Across These Five Chains Are Heavy On Stablecoins, Should You Be Too?

Best Owie
Best Owie
1 year ago
3 mins read
Stablecoins

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Crypto whales all across the board have been seemingly taking more conservative positions in stablecoins since the bear market started. This has evolved into larger holdings in dollar-pegged cryptocurrencies which have very low volatility. These digital assets have since become a safe haven for investors who are looking to escape highly volatile tokens but still keep their funds in the crypto market. 

Crypto Whales Move To Stablecoins

Usually, there has been a marked increase in the stablecoin holdings of the top Ethereum whales but this trend of moving into stablecoins seems to not be localized to just Ethereum whales alone. Data shows that the holdings of whales across 5 blockchains are increasingly skewing towards stablecoin holdings.

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The 5 blockchains in this report are Ethereum, Fantom, BNB Chain, Avalanche, and Polygon, and takes a look at the holdings of the top 1,000 whales. The holdings of the largest whales across all of these chains are mostly in the native tokens of the chain, but stablecoins such as USDT and USDC are increasingly important to them.

For the top 1,000 ETH whales, USDC and USDT currently account for $842 million (26.9%) and $710 million (22.7%) of their holdings respectively. BNB Chain whales leaned even more heavily with BUSD making up 41.19% ($365 million) and USDT making up 16.22% ($144 million) of their holdings.

USDT dominance chart from TradingView.com (stablecoins)

USDT market dominance at 7.68% | Source: Market Cap USDT Dominance on TradingView.com

Fantom (FTM) whales were more into USDC with 30.75% ($12 million) of their holdings in the stablecoin, and 4.67% ($1.8 million) in fUSDT. Avalanche whales hold 74.2% ($265 million) of their holdings in USDT, and 5.68% ($20.3 million) in USDC. Polygon whales allocated the least to stablecoins with only 6.09% ($19.1 million) held in USDC.

Time To Flee For Safety?

Whale holdings and their investment trends can often sway investor sentiment because it shows what these large holders are thinking about the crypto market. Their recent move to stablecoin holdings shows that they expect the market prices to go much lower in the near future.

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This is not strictly out of line given that indicators show that the crypto market has yet to see its bottom. Previous bear markets have seen the prices of digital assets such as bitcoin and Ethereum falling more than 80% each, putting the market bottom of bitcoin at around $13,000.

Given this, and the fact that the market follows the price of bitcoin, if it is not at the bottom, it is a good time to seek safe haven in these digital assets. It helps investors preserve the value of their funds while waiting for better market conditions to start reinvesting.

Featured image from Schroders, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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Best Owie
Best Owie

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

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Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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