According to Santiment, a crypto analytics platform, big investors are accumulating top stablecoins like DAI amid a volatile cryptocurrency market. So what does this mean for the market?
Big investors are accumulating DAI for future crypto purchases
According to Santiment, a blockchain analytics platform, big investors are accumulating top stablecoins like DAI amid a volatile cryptocurrency market. In the report, Santiment notes that since DAI was traded in mid-March to pump BTC and ETH, $100k to $10m DAI addresses have added back 6.4% of the supply.
The report also reveals that medium to large investors are accumulating stablecoins that will be used to purchase cryptocurrencies like Bitcoin in the future. In addition, it is noted that prices in the cryptocurrency market are consolidating. This shows that despite the fluctuations in the crypto market, investors remain optimistic about its long-term potential. In this context, Santiment shared the following:
In April, the crypto markets had its ups and downs. However, sharks and whales are accumulating the best stablecoins like DAI. DAI was traded to pump BTC & ETH in mid-March. Since then, 100k-10 million DAI addresses have added back 6.4% of the supply.
🐳🦈 Even with #crypto markets rollercoastering in April, top #stablecoins like $DAI are being accumulated by sharks & whales. Since $DAI was exchanged for pumping $BTC & $ETH in mid-March, $100k-$10m DAI addresses have added 6.4% of the supply back since. https://t.co/JfQREYLKpW pic.twitter.com/r6zqXb7zo1
— Santiment (@santimentfeed) April 24, 2023
How to interpret the Santiment report?
DAI is the fourth largest stablecoin by market cap. However, DAI briefly lost the US dollar peg in March. Meanwhile, it dropped as low as $0.881, an all-time low. This period, the stablecoin faced some difficulties. However, the stablecoin quickly recovered and regained the dollar stable. In the following period, however, it has mostly maintained its 1 dollar fix well.
According to experts, the increased accumulation of stablecoins by large investors is a positive sign for the cryptocurrency market. This is a sign that institutional investors are starting to get more comfortable with the crypto market. It also shows that institutional investors are willing to invest in this market in the long run.
The report’s findings are particularly important given the current market volatility. cryptocoin.com As you follow, over the past few weeks, the cryptocurrency market has had its ups and downs as Bitcoin plunged to its lowest price since November 2020. However, despite these fluctuations, stablecoins like DAI have remained relatively stable. This has provided investors with a safe haven in these turbulent times.
Overall, the Santiment report shows that the crypto market remains resilient despite recent price fluctuations. As institutional investors continue to accumulate stablecoins like DAI, the market is poised for future growth. Hence, investors remain optimistic about the long-term potential of cryptocurrencies.
