In March 2023, Binance’s share of the stablecoin market cap stood at just 4%. Now, it has grown to as high as 16.8%. Some believe that Binance’s stablecoin inflow played a crucial role in Bitcoin’s rally to the milestone of $100K. Let’s examine the scenario for better clarity. Ready?
Binance’s Record-Breaking Stablecoin Inflows
A crypto market analyst, identified as Darkfost, states that in the year 2024 alone, Binance reported at least $22 billion in stablecoin inflows. Explaining why the exchange stands out, he notes that on December 5, when OKX saw a $1.6 billion stablecoin netflow, Binance witnessed a netflow of at least $13 billion.
The Rise of Stablecoin Holdings on Binance
Another analyst, named joaowedson, highlights that Binance stores at least 16.8% of the total market cap of stablecoins. He mentions that since March 2023, Binance’s share of the market cap has swelled from just 4% to over 16.8%.
Impact on Bitcoin’s Rally to $100K
Bitcoin recently attained a crucial milestone of $100K. Experts assert that Binance’s stablecoin inflows supported Bitcoin heavily to achieve its milestone, emphasising the fact that higher stablecoin reserves enhance liquidity, pushing prices higher across the crypto market.
The Importance of Exchange Stablecoin Reserves
As per joawoedson, at least 24.16% of the total market cap of stablecoins is held by cryptocurrency exchanges. This indicates that exchanges can easily influence crypto prices.
In conclusion, Binance’s growing stablecoin dominance highlights the critical role of liquidity in driving Bitcoin’s price and the broader crypto market.
