In the cryptocurrency world, Bitcoin (BTC) and altcoins are under short-term bear pressure. The period of pullback following the halving seems to be ending. On the other hand, a long consolidation period may begin in the summer. This situation generally indicates a downward trend in the altcoin market. Some sectors like meme coins may exhibit contrary movements. However, the general trend was downward last month.
Stablecoin User Activity Decreased Last Month
Based on data from CryptoQuant, we analyzed stablecoin usage. The following active addresses metric graph was used. This graph tracks the total number of unique active addresses as both senders and receivers. Accordingly, the 7-day moving average has been on a downward trend since April 16.
The market, which showed an upward trend in February, achieved strong gains and peaked in early March. However, just a few days after this peak, Bitcoin managed to surpass the $70,000 resistance.
The recent downward trend indicates a decrease in interaction and trading activities. This suggests that investors are reluctant to enter a bullish phase.
What is the Status of Stablecoin Exchange Reserves?
Exchange reserves consolidated within a range in 2024. From April 23 to May 10, it dropped rapidly, showing a significant decrease in purchasing power. This means that stablecoin holders are spending less of their stablecoins to buy cryptocurrencies.
However, a sharp increase was observed on May 13. Ideally for bulls, the stablecoin exchange reserve will continue to rise in the coming days. The Tether (USDT) dominance chart tracks USDT as a percentage of the total crypto market value.
An upward trend in this metric indicates that investors prefer to stay on the sidelines. On the other hand, a downward trend usually comes with a market-wide rally. While USDT.D is above the 4.9% support level, dominance is expected to rise towards the 5.79% resistance.
If expectations reverse and fall further, bulls may see this as a sign to continue for a longer period.
