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Bybit USDT Reserves Soar 18% as BTC Shows Signs of Local Bottom
Cryptocurrency exchange Bybit has released its twelfth proof of reserve, with USDT holdings increasing by 17.8%.
Cryptocurrency investors are showing a growing appetite for stablecoins as Loss The cryptocurrency exchange revealed in its latest reserve trial a nearly 18% increase in customer holdings in Tether (USDT). According to the exchange report, users’ USDT holdings grew by 433 million USDT as of July 10, marking a 17.8% increase from June 6.
The report also noted a dramatic increase in Circle’s USD coin (USDC), with deposits rising to over 150 million USDC, a jump of nearly 400% since June. In contrast, the algorithmic stablecoin DAI, issued by MakerDAO, has seen a decline, with holdings down 33% over the same period.
Bybit users’ stablecoin reserves as of July 10 | Source: Bybit
Meanwhile, holdings in traditional cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) posted modest gains of 5.62% and 0.46%, respectively, suggesting that traders may be reallocating their liquidity away from stablecoins and into more volatile cryptocurrencies.
The surge in stablecoin holdings coincides with the rise in market capitalization in the sector, as Bitcoin appears to have reached a local price bottom. CryptoQuant CEO Ki Young Ju noted in a post from July 17th On X, the stablecoin market capitalization reached an all-time high in early July, with USDT accounting for 70% of the total market.
While Ju acknowledged that current liquidity levels may not have a significant impact on price movements, he felt the upward trend was “noteworthy” given prevailing market conditions.