Stablecoin Exodus: Exchange Outflows Hit Highest Level Since May 2021

On-chain data shows ERC-20 stablecoins are currently seeing the highest number of exchange withdrawal transactions since May ￰0￱ Are Withdrawing Their Stablecoins From Exchanges In a new post on X, CryptoQuant community analyst Maartunn has shared about the latest trend in the Exchange Withdrawing Transactions for the Ethereum-based ￰1￱ indicator measures, as its name implies, the total number of transfers related to an asset or a group of assets flowing from wallets connected to centralized exchanges to self-custodial addresses. Generally, investors take their coins into self-custody when they are planning to hold them in the long term, or at least, not immediately looking to trade them ￰2￱ such, a high value of the Exchange Withdrawal Transactions can be a signal that investors aren’t looking to sell the cryptocurrency right now.

Now, here is a chart that shows how the 30-day moving average (MA) of the stablecoin Exchange Withdrawing Transactions has fluctuated since 2020: As displayed in the above graph, the Exchange Withdrawing Transactions for the ERC-20 stablecoins has seen its 30-day MA value follow a sharp uptrend ￰3￱ suggests an increasing amount of transfers are occurring to take stables away from the custody of ￰4￱ a volatile asset like Bitcoin were involved here, this trend would have naturally been bullish for its ￰5￱ as stablecoins have their price constant around a fiat currency, selling or buying doesn’t affect their price in the same manner. Instead, what investors do with stables can have an effect on the volatile side of the ￰6￱ holders deposit these fiat-tied tokens to exchanges, it can be an indication that they are looking to buy into Bitcoin and other ￰7￱ the other hand, their shifting the coins away from exchanges can be a sign that they want to keep their capital still in the safety of the stablecoins for some ￰8￱ the recent rapid growth in the stablecoin Exchange Withdrawal transactions, its value has reached the 67,384 mark, the highest level since May ￰9￱ previous spike in May 2021 occurred as holders sold Bitcoin for stables during the infamous crash that ￰10￱ the latest spike in the metric’s 30-day MA value is extraordinary in scale, it’s still just the first surge in demand for withdrawing stablecoins in the current cycle so ￰11￱ previous cycle witnessed several spikes of a similar scale before the music stopped for the bull ￰12￱ Price Bitcoin has seen another setback during the past day as its price has returned to the $110,900 level.