USDP whales have currently doubled their holdings.
USDP has witnessed more negative flows in recent weeks as the accumulation continues.
While Paxos Dollar (USDP) may not currently be among the top five stablecoins, its recent performance in metrics has skyrocketed. Interestingly, it has caught the attention of prominent investors, commonly referred to as “whales”, who are engrossed in this stablecoin. The indicators strongly suggested that significant stablecoin accumulation was taking place.
USDP whales intensify accumulation
According to a recent Santiment chart, Paxos Dollar (USDP) experienced a remarkable increase in accumulation.
The chart showed that addresses with a significant amount of USDP, ranging from 100,000 to 10 million units, made up 34.5% of the total at the time of writing. Particularly noteworthy was that in early July, these whale addresses ramped up their accumulation efforts. While other stablecoins had a higher percentage of whale ownership, it showed higher accumulation than its counterparts.
Additional data from Coin Market Cap reinforced the importance of whale involvement in USDP. At the time of writing, whales had an impressive volume of over 76%. The chart illustrated that whales currently hold more than 389 million USDP units. However, it is worth noting that there has been a decline in whale catches at the time of this writing, indicating possible shifts in their strategies or market dynamics.
Negative flows dominate USDP flows
Analyzing CryptoQuant’s exchange net flow data, it becomes clear that Paxos Dollar has experienced mostly negative flows over the past few weeks, with occasional positive flows. This pattern suggests that more USDP has been withdrawn from exchanges than deposited.
However, an interesting exception occurred on July 14, which coincided with an increase in the volume and prices of alternative cryptocurrencies (altcoins). During this period, there was a notable influx of stablecoins across several exchanges, with USDP witnessing over 5 million units of positive net flow. However, the next day saw a return to negative net flow.
These sightings implied that whales were on a wave of accumulation, waiting patiently for the opportunity to acquire volatile coins like Bitcoin and other altcoins. Their actions are driven by the belief that a significant price spike was imminent in multiple cryptocurrencies.
This post USDP: Renewed interest from investors offers a welcome change for the stablecoin
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