Tether (USDT) and USDC Hinting at Possible Next Move for Crypto Markets, According to Analytics Firm Santiment
The on-chain patterns of the top two stablecoins by market cap could hint at when the crypto markets are gearing up for another leg up in price, according to the analytics firm Santiment.
Santiment says in a new analysis that traders should monitor Tether (USDT) and US Dollar Coin’s (USDC) supply on exchanges because that metric can indicate when there’s “something brewing” with crypto asset prices.
“Especially when USDT and USDC supplies are being moved rapidly to exchanges, as we saw with USDC in March right before the market-wide price surges.”
The analytics firm also notes that traders should pay attention to whether the top 10 largest USDT and USDC addresses are adding stablecoins.
Additionally, Santiment suggests that traders monitor the mean dollar invested age of Tether and USDC. The mean dollar invested age is the average age of all tokens on the blockchain weighted by the purchase price.
“Mean dollar invested age is what we would call a ‘validator’ metric. When the curve of this line begins moving down, it’s indicating that any upswing in crypto markets is being validated by dormant coins moving to push up prices even further in the future.
And in the case of stablecoins, movement of older coins that had been stagnantly sitting in wallets is generally a very good sign.”
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