The CEO of blockchain startup Messari suggests that more investors are preparing to re-enter the cryptocurrency markets with $3,000,000,000. Ryan Selkis bases his prediction on data which shows a significant amount of stablecoins held by investors.
A significant number of sideline investors are using stablecoins to keep one foot in the market and one footer out. Now, with greater prospects for profit on the horizon, more could convert their stablecoins to bitcoin and other top cryptocurrencies. Many traders have been known to use stablecoins to avoid the volatility of the cryptocurrency markets.
Accoridng to Messari CEO Ryan Selkis,
“There’s now $3 billion++ of stablecoins sitting on exchanges. If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks. Instead, we’ve got more dry powder held in the crypto economy than ever before. In both real and market cap % terms.”
Selkis suggests that $3 billion in stablecoins is sitting on exchanges. In both real and market cap percentage terms, there is more dry powder held in the crypto economy than any other time in history.
“If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks.Instead, we’ve got more dry powder held in the crypto economy than ever before.”
Some analysts suggest that investors converted their cryptocurrency investments to stablecoins as part of a shift to longer-term holding strategies. They remain optimistic about the long-term return on investments of major cryptocurrencies such as BTC.
While native stablecoins continue to attract attention, major banking heads are trying to catch up by creating their own digital cash.In recent times, more central banks and multinational investment banks have taken strategic steps to build their vaults of blockchain resources. Deutsche Bank researchers predict that central banks will begin to use digital cash in the future as the economic consequences of the coronavirus grow.