- The blockchain activity for Tether reached 143,480 wallets during a single day, which became the highest level seen in six months, potentially indicating market changes.
- The activity of stablecoins historically grows during market declines before investors return to buy Bitcoin along with alternative cryptos.
- Santiment data reveals that USDT wallets alongside network expansion showed identical patterns.
Tether has experienced a notable increase in on-chain activity, suggesting a potential shift in market sentiment. On March 11, Santiment reported 143,480 wallets engaging in USDT transactions which became the largest monthly wallet participation since September. Activity within stablecoins tends to act as an indicator for renewed market buying pressure to develop.
Indicators of major price drops encourage traders to use USDT stablecoins for market protection as they plan their market reentry. The data from Santiment demonstrates increasing USDT movement among traders who seem ready to buy assets when prices drop. Historical market downtrends show that stablecoin holders began accumulation before market recovery phases.
Previous Trends Suggest Market Recovery
On September 14, Tether recorded the creation of 53,767 new wallets, coinciding with an accumulation phase that preceded a significant market rally. The recent surge in USDT transactions mirrors this trend, reinforcing expectations of a possible rebound. The increase in network growth and daily active addresses suggests that traders are positioning themselves strategically in anticipation of improved market conditions.
Market participants shifted their funds toward stablecoins because the broader cryptocurrency market experienced substantial price declines during a risk-averse period. History shows that positive market sentiment produces capital inflows into Bitcoin together with the major altcoins market. Under normal circumstances, an upward movement of USDT activity would accompany a market reversal.
The latest movement of USDT corresponds to previous market accumulation phases which fueled market recovery according to Santiment analysis. The growing movement of stablecoins reveals that traders have started preparing for the next chance to invest in the crypto market despite how economic conditions and investor mood will influence the outcome.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
