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Ethereum stablecoin holders transferred billions to centralized exchanges following the results of the 2024 U.S. presidential election.
After Donald Trump was declared the winner, Binance and Coinbase received the second-largest tranche of Ethereum stablecoin deposits in crypto history. Users moved approximately $4.3 billion to Binance, while Coinbase received around $3.4 billion, totaling $9.3 billion in ERC-20 stablecoin transfers on Nov. 6, according to a CryptoQuant analyst.
Large stablecoin inflows have historically signaled bullish movements for cryptocurrencies and decentralized finance. In late 2020, similar large-scale deposits contributed to rising token valuations as users allocated capital.
Stablecoins are cash-like cryptocurrencies that maintain parity with fiat assets, like the U.S. dollar. Tether (USDT) and Circle (USDC), the largest operators in this sector, boast multi-billion tokens. Over $179 billion sat in crypto stables at press time.
Researchers from the U.S. Treasury Department found that 80% of all crypto transactions over the past year involved fiat-pegged tokens, highlighting that most digital asset investors transact using crypto-stablecoin pairs.
These CEX ERC-20 stablecoin inflows and the post-election market rally spurred widespread bullish sentiment. The crypto fear and greed index hovered in the 70s as Bitcoin (BTC) surged to a new all-time high of $76,243.
Most altcoins in the top 100 cryptocurrencies and DeFi tokens by market cap followed suit as digital asset prices rallied with Trump’s re-election, which many consider an industry boon. QCP Capital experts said the market seemed poised for a continued uptrend heading into 2025, per an update shared on Telegram.
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.
QCP Capital