Liquidity is growing in the crypto market, but it has not yet been allocated

Liquidity-is-growing-in-the-crypto-market-but-it-has-not-yet-been-allocated

In the last 30 days, more than US$3.65 billion was added to the market through the stablecoin USDT, the main proxy for the dollar today.

This type of increase in capitalization reflects a greater allocation of external capital within the crypto market, since to issue new USDT, it is necessary to collateralize goods and assets from the traditional market.

Note that periods with increased liquidity via stablecoins reflect a greater demand for digital assets, but this does not necessarily happen immediately.

At this time, much of the capital that is being allocated to stablecoins remains without providing buying pressure on the order books, but this “firepower” could reach the market at any time.

In addition, it is possible that institutional investors are buying digital assets via TWAP orders or with algorithms to reduce the impact on the short-term price.