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The number of stablecoins being deposited on trading platforms has seen a tremendous rise over the past 24 hours. Data from crypto analytics platform Whale Alert showed that Binance exchange, Bitfinex, Kraken and FalconX are among the top destinations for some of the stablecoin deposits by market whales.
In one of the funds sent, as captured by the analytics firm, as much as 65,000,000 USDT worth $64,993,500 was transferred from an unknown wallet to Bitfinex. Binance recorded a series of these humongous inflows in different tranches, including one 50,989,985 BUSD transaction worth $51,015,480 that was transferred from Paxos Treasury to Binance.
Binance also received two other deposits from Paxos Treasury, including one of 60,081,112 BUSD and another of 88,888,888 BUSD. From the alerts published by Whale Alert, other exchanges like FalconX also saw remarkable inflows from an unidentified wallet featuring 51,000,000, worth more than $50.9 million.
The movement of the funds to Binance comes despite recent claims that the exchange's BUSD stablecoin has not always been fully backed.
Permutations of what is going on
Stablecoins are undoubtedly the de facto fiat assets in the digital currency ecosystem, and the movement of these funds may imply that the funds being moved by these whales are billed for taking positions in Bitcoin (BTC) or other altcoins altogether. While on-chain data does not offer specific insights into the actual use of these funds, it might also be possible that these whales are moving these funds to meet payment for other debt obligations.
One important observation on the Whale Alert platform also showed that Paxos Trust has minted more than 156 million BUSD over the past 24 hours. As such, its push to send the funds to Binance may be for safekeeping through the exchange's custody program.
While there are many ways these actions can be explained, it will be hard to tell if these rising exchange balances will be for the short-term benefit of the industry.
Denys Serhiichuk
Dan Burgin
Alex Dovbnya
Vladislav Sopov