Blockchain analytics platform Santiment says massive amounts of stablecoin Tether (USDT) are returning to crypto exchanges, which is often a bullish signal.
The analytics platform say that the amount of USDT on exchanges has reached levels last seen in March 2023, boosting the “purchasing power” of crypto investors.
“The $9.99 billion worth of Tether listed on exchanges is the highest level of purchasing power for crypto’s top stablecoin in about seven months. Since June 13, these exchanges have seen a 40% increase in available USDT.”
Looking at the company’s chart, USDT had a high of $16.96 billion on the exchanges in August 2022, which fell to a low of $7.12 billion in June 2023, a decline of over 58%.
The company also says that Ethereum (ETH) appears to be setting the stage for a big move higher as bearish sentiment rises.
“Ethereum has fallen to $1,570, and crypto’s second market cap has become an increasingly polarizing topic. Currently, at the lowest rate level of 2023, traders are getting impatient. The rising bearish sentiment is a good sign of an impending reversal.”
According to Santiment, Ethereum’s social dominance indicator, a benchmark for crypto media discussions referencing the asset, is also bullish, with ETH discussions on platforms rising to levels last seen in February 2023.
Ethereum is trading at $1,578 at the time of writing, down 0.9% in the past 24 hours.
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Generated image: Midjourney