After the 2024 US presidential election, billions were transferred from Ethereum stablecoin holders to centralized exchanges including Binance and Coinbase. A CryptoQuant analyst told Decrypt after Donald Trump’s victory, that Binance saw around $4.3 billion cash in hand, and Coinbase got around $3.4 billion for a total of $9.3 billion in ERC 20 stablecoin transfers on November 6.
It is the second biggest inflow of Ethereum stablecoins into exchanges in crypto history.
The historical relationship between the inflows of large stablecoins and bullish trends in cryptocurrencies and decentralized finance has been that token valuations rose when such transfers took place in late 2020.
Stablecoins Gain Popularity as Crypto Market Optimism Grows Post-Election
Crypto transactions using stable coins stays stable while dealing with the volatility of other cryptos. The sector’s most influential players, Tether and Circle, alone have billions of stablecoin hoarded, with a total of $179 billion in circulation.
U.S. Treasury Department recently conducted research, which found that 80% of all crypto transactions have been fiat pegged tokens in the past year, highlighting their role as a key spot in digital asset’s transactions.
The popularity of ERC-20 stablecoin deposits has soared on exchanges the past weeks, buoyed by a post election market rally that has sent optimism throughout the market.
Crypto fear and greed index is in the 70s, meaning it’s still pretty bullish, and Bitcoin is up to a new record of $76,243.
Trump’s re-election was viewed as positive for the industry, with most top 100 altcoins and DeFi tokens also gaining. Shared on Telegram, analysts at QCP Capital said the market looks like it’s headed for a continued uptrend into 2025.
The crypto market has been on fire with BTC hitting all-time high of 75k after touching its previous record of 73.5k, set back on March 14. Since then, BTC has traded mostly within a tight range below 70k. Notably, BTC has now navigated three election cycles since its inception in 2009, each followed by rallies to new highs, with prices never dipping back to pre-election levels.
