Despite some bullish developments, the digital asset market is still missing a key ingredient that is critical to driving a sustained price rally, according to analytics firm CryptoQuant.
CryptoQuantum grades that demand has increased for Bitcoin (btc) and Ethereum (ETH).
โThe growth in demand for Bitcoin among permanent holders added 70,000 Bitcoin in the last 30 days. Demand from large investors increases 4.4% monthly. Additionally, large investors are pumping $1 billion a day into Bitcoin, resembling activity prior to the 2020 rally...
Demand for Ethereum has also increased. After May 20, demand for ETH skyrocketed due to one-time ETH ETF approvals in the US. Daily purchases by permanent holders increased to 40,000 ETH, with large investors holding 16 million ETH.โ
However, CryptoQuant grades that stablecoin liquidity needs to recover to fuel a sustained cryptocurrency rally.
"Tether's USDT market capitalization growth, an indicator of new liquidity in crypto markets, has continued to slow and is now growing at the slowest pace since February 11. Price rallies are typically accompanied by an acceleration in the growth of stablecoin liquidity".
USDT It is the leading stablecoin by market capitalization and aims to maintain a 1:1 peg to the US dollar.
Bitcoin is trading at $70,812 at the time of writing and is up almost 4% in the last seven days.
ETH is trading at $3,809 and is up 1.5% in the past week.
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