Large Investors Accumulate DAI for Future Crypto Purchases
In the midst of a volatile cryptocurrency market, top stablecoins such as DAI are being accumulated by large investors, according to Santiment, a blockchain analytics platform. The report stated that since DAI was exchanged for pumping BTC & ETH in mid-March, $100k-$10m DAI addresses have added 6.4% of the supply back since.
The report also revealed that medium and large-sized investors are accumulating stablecoins that will be used to purchase cryptocurrencies such as Bitcoin in the future, while the cryptocurrency market is consolidating prices. This suggests that despite the fluctuations in the crypto market, investors remain optimistic about its long-term potential.
🐳🦈 Even with #crypto markets rollercoastering in April, top #stablecoins like $DAI are being accumulated by sharks & whales. Since $DAI was exchanged for pumping $BTC & $ETH in mid-March, $100k-$10m DAI addresses have added 6.4% of the supply back since. https://t.co/JfQREYLKpW pic.twitter.com/r6zqXb7zo1
— Santiment (@santimentfeed) April 24, 2023
DAI, the fourth-largest stablecoin by market capitalization, faced some challenges in March when it briefly lost its US dollar peg, falling to an all-time low of $0.881. However, the stablecoin quickly recovered, regaining its dollar peg and holding its $1 price mostly well.
According to industry experts, the increased accumulation of stablecoins by large investors is a positive sign for the cryptocurrency market. It suggests that institutional investors are becoming more comfortable with the crypto market and are seeking to invest in it for the long term.
The report’s findings are particularly relevant given the current market volatility. Over the past few weeks, the cryptocurrency market has been on a rollercoaster ride, with Bitcoin falling to its lowest price since November 2020. However, despite these fluctuations, stablecoins such as DAI have remained relatively stable, providing investors with a safe haven during these turbulent times.
Overall, the Santiment report suggests that the crypto market remains resilient despite the recent price volatility. With institutional investors continuing to accumulate stablecoins such as DAI, the market is poised for future growth, and investors remain optimistic about the long-term potential of cryptocurrencies.
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