<p>In March 2023, Binance held just 4% of the stablecoin market cap. Today, that figure has skyrocketed to 16.8%. Many believe that Binance’s influx of stablecoins has played a crucial role in Bitcoin’s recent rally, helping it hit the $100K mark. </p>   
<p>Let’s break down what’s happening and why it matters.</p>   
<h2 class="wp-block-heading" id="h-massive-stablecoin-inflows-in-2024"><strong>Massive Stablecoin Inflows in 2024</strong></h2>   
<p>Crypto analyst Darkfost reports that Binance saw at least $22 billion in stablecoin inflows in 2024 alone. He points out that what makes Binance stand out is its large share of the market. For example, on December 5, while OKX saw a $1.6 billion stablecoin netflow, Binance recorded a much higher $13 billion netflow.</p>   
<figure class="wp-block-image">
 <img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdOvSNF7qNv0Pnzc0NwRPIhFeB4tYQeymiKpr4_5M5elIojo1G2FHEsOmueBU0rFG5l5-uxnrmQYwS35t2kkiRqmZgZUOJGPc-odTcxxeVv2WCRn7_NFkjQqQ3rCWCWZDHxtIz9?key=QMTlDbPyxV40o7Mg7m3yz1Tr" alt="">
</figure>   
<h2 class="wp-block-heading" id="h-binance-s-market-share-explosion"><strong>Binance’s Market Share Explosion</strong></h2>   
<p>Another analyst, joaowedson, highlights that Binance now controls 16.8% of the total stablecoin market cap. This is a dramatic increase from just 4% in March 2023, showing how much the exchange has grown in influence within the stablecoin market.</p>   
<figure class="wp-block-image">
 <img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdYXxDnrTjQybmZ1fjr0u3xxREIHGjSuWbI26hPleJp2xKIpO293QqFIbIzHzWbDV-Ge8FmrgIzWh63E4kb0NDx6G9E84MwTZ4aAkrPjneE-zl3G7U10NCKxrlw8rBQOZQ8_AExPQ?key=QMTlDbPyxV40o7Mg7m3yz1Tr" alt="">
</figure>   
<p>Bitcoin’s recent jump to $100K has caught the attention of many experts. Some argue that Binance’s stablecoin inflows were a key factor in this rise. Larger stablecoin reserves improve liquidity, making it easier to execute large trades without causing big price swings. </p>   
<p>This helps push prices higher across the crypto market, especially for Bitcoin.</p>   
<h2 class="wp-block-heading" id="h-exchange-reserves-hold-the-power">Exchange Reserves Hold the Power&nbsp;</h2>   
<p>According to joaowedson, exchanges like Binance control about 24.16% of the total stablecoin market cap. This concentration of stablecoins in the hands of exchanges means they have the power to influence crypto prices, including Bitcoin’s.</p>   
<p>As more stablecoins flow into Binance and other exchanges, they will likely continue to shape market trends and fuel further price rallies.</p>   
<p><strong>The growing influence of Binance in the stablecoin market is a clear sign that liquidity will remain a key driver of crypto prices in the years to come.</strong></p>

Binance’s $22B Stablecoin Inflows Power Bitcoin’s $100K Rally – Here’s How

Table of Contents

CoinPedia News

Other articles published on Dec 14, 2024

Lightchain AI Price Prediction for 2030 & 2040 Will RXS Stand the Test of Time?

Ledger Hardware Wallet Faces Security Concerns After $2.5M Theft Report

REI Network Joins Forces with Imagen AI to Transform AI-Driven Web3 Creativity

Prepare for the 2025 crypto bull market with this ultimate guide

Only One Rule for Crypto! John Deaton Pushes for SEC-CFTC Merger

Top Crypto Predictions: Dogecoin Price To Reach $10, Shiba Inu Price At $1, And ETFSwap (ETFS) Pr...

Join our free newsletter for daily crypto updates!