Binance Dominates Stablecoin Inflows as $58.2 Billion Floods into Exchanges Amid Fed Rate-Cut Expectations

Ahead of the upcoming FED’s interest rate cut decision this September, huge quantities of stablecoins continue flowing into the Binance exchange. According to data shared today by CryptoQuant analysts, stablecoins worth $6.2 billion flowed into Binance on Monday, 8 ^th September, making it the biggest daily inflow of the year. As reported by the analysts, this increase in stablecoin inflows in exchanges indicates the crypto market’s anticipation of a forthcoming interest rate cut . A reduction in interest rates normally increases liquidity in the market and functions as a bullish catalyst for risky assets like crypto coins.

Huge Inflows of Stablecoins in Binance Ahead of FOMC Meeting

According to the data, stablecoins on crypto exchanges have significantly increased ahead of the upcoming interest rate cut decisions at the next FOMC meeting. As per the data, the surge in stablecoins on centralized crypto exchanges has been fuelled mainly by the increase of such assets on Binance. The data pointed out that such inflows could be partially coming from Binance itself to fulfill customers’ demand on the exchange.  However, the inflows could also be an indicator of customers transferring their stablecoins into the exchange. This shows that liquidity continues to move into the wider cryptocurrency market, with Binance functioning as the major getaway.

As stated in the data, one of the major reasons crypto customers deposit their stablecoins on centralized exchanges is transaction activities. Inflow of these stable assets is a bullish indicator for the crypto market. Clients often store their money in the form of stable assets to temporarily avoid fluctuations in the market. Whenever they want to transact, they swap their stable assets into BTC or their other preferred crypto assets. Due to their ‘stable value’ role, stablecoins are often regarded as the buy-side liquidity for the crypto market.

The data shows how various centralized exchanges hold the share in terms of stablecoin reserves. Binance holds the largest share of stablecoin reserves at $39 billion (67%), while other exchanges combined hold the rest of the share (33%).

BTC Trades at $113,998 As Stablecoin Flows Show User Confidence

Bitcoin is currently trading at $113,998, up 2.6% over the past week and down 5.4% in the past month, painting an outlook of correction and cautious enthusiasm, with stablecoin inflows and corporate investor activity driving the market momentum. Since early this month, BTC’s price has displayed signs of consolidation, fluctuating within a range of $107,000 to $114,000, signifying a battle between purchasing frenzy and selling pressure.

Stablecoin movement into exchanges has emerged as a major catalyst for Bitcoin’s on-chain activity and user interactions with other cryptocurrencies.  Over the past 24 hours, BTC’s trading volume reached $147 billion, an increase of 9.70% from the previous day. This volume was mainly facilitated by stablecoin usage (majorly USDT and USDC) in cross-chain settlements.