The Financial Services and Markets Bill stands to recognize crypto as a regulated activity and stablecoins as a means of payment.
Bitcoin, Ether and Stablecoins Total 80% of $1T Crypto Market Cap as Investors Flee Altcoins
The combined market capitalization of BTC, ETH and stablecoins reached the highest since February 2021, digital asset research firm K33 Research noted.
New Stablecoin Bill Drafted by House Republicans as Compromise With Democrats
The Republican chair of the House Financial Services Committee has released a new draft of the leading U.S. legislative proposal for overseeing stablecoins, and it includes some of the positions of Democratic lawmakers.
Stablecoin Regulation Is a Sticking Point Between the G-7 and G-20
Global leaders appear to have reached a consensus on setting up universal rules and standards for most aspects of the crypto sector save for the treatment of stablecoins.
Aave Lending Protocol Moves Closer to Launching GHO Stablecoin on Ethereum Mainnet
Aave Companies proposed two key features for the decentralized stablecoin in a governance post on Tuesday.
Stablecoins are a critical countermeasure to Operation Chokepoint
Stablecoins could help crypto firms to remove themselves from the banking system — and prevent the U.S. government from cutting off their financial lifelines.
Tether Market Cap Climbs to All-Time High of $83.2B, Even as Stablecoin Market Sinks
USDT has reached a $83.2 billion market capitalization, recovering all its losses since the implosion of blockchain project Terra more than a year ago.
Olive-Oil Producer Issues First Euro-Stablecoin-Denominated Bond on Obligate’s DeFi Platform
The debt sale was the first of its kind for the French sustainable agriculture business.
This bearish technical pattern hints at a double-digit drop in Bitcoin price
Inflation concerns and the U.S. debt standoff cast a long shadow over Bitcoin’s dwindling bullish prospects.
Stablecoin Market Shrinks for 14th Straight Month, Posing Potential Headwinds for Crypto Prices
The continued contraction of the stablecoin market capitalization suggests that the crypto markets are still in their bear phase, macro analyst Tom Dunleavy said.
Sharks & Whales Accumulate Stablecoins, Why This Could Be Bullish For Bitcoin
Data shows the sharks and whales of the largest stablecoins have been accumulating, something that may turn out to be bullish for Bitcoin.
Sharks & Whales Have Been Loading Up On Stablecoins Recently
According to data from the on-chain analytics firm Santiment, the sharks and whales have recently improved their share of the total supply of stablecoins like USD Coin (USDC), Dai (DAI), and Binance USD (BUSD).
The relevant indicator here is the “Supply Distribution,” which tells us what percentage of a cryptocurrency’s total circulating supply is being held by which wallet group in the market.
Addresses are divided into these “wallet groups” based on the total number of tokens that they are holding at the moment. In the context of the current discussion, the 100,000 to 10 million coins cohort is of interest.
This group naturally includes the wallets of all the investors who are carrying a balance of at least 100,000 and at most 10 million tokens. As the assets in question here are USD-pegged stablecoins (meaning that their value is fixed at $1), the bounds of this range convert to $100,000 and $10 million, respectively.
As these amounts are massive, only the largest of the investors in the market would be sitting on these addresses. The sharks and whales are two such cohorts that are large enough to cover these wallets.
These groups can be quite influential in the market, as they have the power to move a notable amount of coins at once. Obviously, the whales would be the more important group of the two, as they are the larger cohort.
Now, here is a chart that shows the trend in the Supply Distribution of these sharks and whales for three of the most popular stablecoins in the sector:
As displayed in the above graph, the supplies of these three stablecoins hit a low back in March, but have since then observed an increase. This means that sharks and whales of the respective tokens have been accumulating during this period.
Generally, investors use stables whenever they want to avoid the volatility associated with other assets like Bitcoin. So, sharks and whales picking up these coins can be a sign that they have been exiting the other assets recently.
Eventually, however, such investors who have taken safe haven in stablecoins may exchange these tokens back for the volatile coins, once they feel that prices are right to jump in.
Whenever these holders swap their stables, the prices of the assets that they are shifting into can naturally observe a buying pressure. This implies that the currently piled-up stablecoin supplies of the sharks and whales can be looked at as the potential dry powder that may be deployed into assets like Bitcoin.
In the last couple of weeks, the USDC, DAI, and BUSD supplies of these humongous holders have flatlined, meaning that they may have slowed down their exit from the volatile coins. If the trend now reverses and they start scooping up the other cryptocurrencies with their stables, BTC could possibly feel a bullish effect.
BTC Price
At the time of writing, Bitcoin is trading around $26,700, down 1% in the last week.
Bitcoin Climbs Past $27.4K but Remains in Holding Pattern as Investors Continue U.S. Debt Limit Vigil
Ether and most other major altcoins rise slightly, even as stocks drop amid worries about whether U.S. lawmakers will reach an agreement before June 1.
EU Banks Could Access Stablecoins More Easily Under Leaked Plans
The European Commission’s plans could moderate a push from Parliament to discourage crypto holdings as it debates new capital requirements for banks.
Stablecoin issuers have spent over $1.3M lobbying Congress since 2022
Tether and Circle have been leading lobbying efforts among stablecoin issuers as they push for legislation and regulations for stablecoins.
U.S. Hearing Highlights Stablecoin Rift in Competing House Bills
U.S. lawmakers aren’t yet able to reach across the chasm between Republicans and Democrats’ very different ideas for how to oversee stablecoins, despite notes of hope from both sides evident in a Thursday hearing of the House Financial Services Committee’s digital assets panel.
Stablecoins Interest Spikes As Traders Look To Exit Market
Data shows there has been a large spike in interest around stablecoins recently, a sign that investors of Bitcoin and other assets may be looking to exit.
Stablecoins Have Observed A Sharp Rise In Social Volume Recently
According to data from the on-chain analytics firm Santiment, there has been a major uptick in the social volume of the stablecoins recently. The “social volume” refers to an indicator that measures the total number of social media text documents that are talking about a certain topic or term.
The social media text documents here have been collected by Santiment and include a variety of sources like Reddit, Twitter, Telegram, and other internet forums.
Something to note about the metric is that it only tells us about the unique number of such posts that are mentioning the given term at least once. This means that even if a thread includes several mentions of the topic, its contribution towards the social volume will still remain only one unit.
The social volume can provide insight into the degree of attention any particular coin is getting on social media platforms. Whenever this indicator’s value goes up, it means that the general interest in the asset among investors is rising currently.
Now, here is a chart that shows the 7-day change in the social volume for the various assets in the cryptocurrency sector (including the stablecoins):
As displayed in the above graph, the social volume of a lot of the volatile assets has registered a negative 7-day change, implying that there is a lesser amount of discussion happening related to them right now as compared to a week ago.
Some of the assets like Bitcoin have seen a positive 7-day change in the metric, but the increase has only been minuscule for them, implying that their social volume is relatively unchanged.
Interestingly, while the volatile assets may have seen decreasing or sideways-moving social volumes, the stablecoins have seen a completely different trend with the metric; their social volumes have sharply surged in the past week.
USD Coin (USDC), which is the stablecoin second only to Tether (USDT) in terms of market cap, has seen an extraordinary rise of more than 300% in terms of this metric. This suggests that discussions around the coin have increased by more than 300% during the past week.
Tether itself has observed a positive 7-day change in the social volume of more than 30%, which, while much lesser than USDC’s, is still quite significant nonetheless.
Generally, investors use stables whenever they want to escape the volatility associated with the other coins in the sector. So, since the interest around these tokens has surged recently while the volatile cryptocurrencies have been seeing a red period, it would appear that holders may once again be seeking the safety of this stable form of digital assets.
BTC Price
At the time of writing, Bitcoin is trading around $27,300, down 2% in the last week.
House Democrats Consider New Stablecoin Bill Proposal: Source
House Democrats on the Financial Services Committee are considering a new version of proposed stablecoin bill weeks after Republicans on the committee introduced their own discussion draft.
The US should promote USDC — before it’s too late
USDC brings stability to cryptocurrency. It would behoove the financial system if policymakers took measures to foster its adoption.
EU Could Veto Large Stablecoins During MiCA Approval Process, Regulator Signals
The European Banking Authority doesn’t want private crypto initiatives to threaten monetary policy privileges
Circle reportedly adjusts USDC reserves to avoid US default risk
The world’s second-largest stablecoin issuer wants to reduce its exposure to potential US debt defaults.
