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crypto.news 2025-05-08 09:05:33

Binance stablecoin inflows surge, hinting at possible crypto market breakout

Stablecoin inflows to Binance surged sharply this week, signaling a potential bullish breakout across the crypto market. In a May 8 post on X, CryptoQuant contributor Darkfost reported that Binance stablecoin inflows have been steadily increasing over the last three days. Nearly $1 billion worth of stablecoins were deposited into Binance on May 6 alone, the biggest inflow since April. This increase suggests that investors are getting ready to re-enter the market. Stablecoins are often sent to exchanges when traders are preparing to buy crypto. After weeks of sideways price action, this week’s activity points to growing confidence. Binance’s stablecoin reserves have grown steadily since November 2024, making it the largest of all centralized exchanges. Stablecoin inflows to Binance have increased significantly over the past three days, with May 6th standing out as the largest single-day inflow since April approaching $1 Billion in total. 💡– Stablecoin inflows typically reflect investor readiness to enter the market, as… pic.twitter.com/dq0Zl914n2 — Darkfost (@Darkfost_Coc) May 7, 2025 In addition to the exchange inflows , stablecoin supply has grown rapidly. In May, the total stablecoin supply has hit a record high of $242.2 billion, up 3.5% in the past month, as per DeFiLlama data . You might also like: Stripe stablecoin accounts go live in over 100 countries With a $4.5 billion supply addition in the last 30 days, Tether ( USDT ) led the expansion. Stablecoin activity also grew on BNB Chain ( BNB ), where World Liberty Financial’s USD1’s market cap crossed $2.1 billion after a supply jump. Historically, this kind of growth has preceded market rallies. During the 2020–2021 bull market, the stablecoin supply expanded by over $120 billion as traders poured in liquidity, helping push Bitcoin ( BTC ) from under $10,000 to over $60,000. That pattern may be repeating. Bitcoin broke above $99,000 on May 8, following a sharp rise in stablecoin inflows. The total crypto market cap now stands at $3 trillion and may rise higher as investors continue to deploy stablecoins. Still, some concerns remain. In a May 5 article , Bitwise chief investment officer Matt Hougan warned that delays in passing stablecoin legislation, such as the GENIUS Act, could slow progress. Hougan argued that legislation is needed to lock in recent gains and allow large institutions to fully enter the space. Without it, political shifts could reverse progress. He remains hopeful that a stablecoin bill will eventually pass and believes the market has the potential to hit new all-time highs this year. Read more: World Liberty Financial opens vote to airdrop USD1 stablecoin to WLFI holders

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