The CEO of the blockchain database Messari says there is a huge amount of crypto capital waiting on the sidelines, ready to invest in bitcoin (BTC), ethereum (ETH), XRP (XRP) and the altcoin market in general.

Ryan Selkis presents new data showing that cryptocurrency exchanges now own more than $3 billion of stablecoins for its customers. He states that these investors are strategically positioned to re-enter the speculative crypto market.

There's now $3 billion++ of stablecoins sitting on exchanges.



If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks.



Instead, we've got more dry powder held in the crypto economy than ever before.



In both real and market cap % terms. pic.twitter.com/rCEYNqcMY0 — Ryan Selkis (@twobitidiot) April 17, 2020

If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks.

Stable Coins

Stablecoins are digital currencies that are linked to traditional assets such as the USD. They are designed to maintain a constant value and offer crypto traders an easy way to escape the high volatility of crypto markets.

In November, Binance Research published a report on the habits of 69 large-powered customers with crypto assets ranging from $100,000 to $25 million. The survey found that 96% of this group uses stablecoins, in which Tether (USDT) effortlessly ranks first.

USD Tether (USDT) remains the most used stablecoin, despite the fact that the ongoing legal issue is considered to be one of the main risks for the industry.

Although there are also alternative options such as USDC (Coinbase, Circle) and BUSD (Binance), the fiat supported coins remain more prominent like Tether which is also reflected in higher liquidity and market capitalization.