- USDP whales have currently doubled their holdings.
- USDP witnessed more negative flows in recent weeks as accumulation continued.
While Paxos Dollar (USDP) may not currently rank among the top five stablecoins, its recent performance has surged in metrics. Interestingly, it has caught the attention of prominent investors, commonly called “whales,” who are growing engrossed in this stablecoin. The indicators strongly suggested that there was a significant accumulation of the stablecoin taking place.
USDP whales intensify accumulation
Per a recent Santiment chart, Paxos Dollar (USDP) experienced a notable increase in accumulation.
The chart revealed that addresses holding a substantial amount of USDP, ranging from 100,000 to 10 million units, accounted for 34.5% of the total as of the time of writing. Particularly noteworthy was that these whale addresses intensified their accumulation efforts at the start of July. While other stablecoins boasted a larger percentage of whale holdings, it demonstrated a higher accumulation rate than its counterparts.
Source: Santiment
Additional data from Coin Market Cap reinforced the significance of whale involvement in USDP. As of this writing, whales possessed an impressive volume of over 76%. The chart illustrated that whales currently held more than 389 million USDP units. However, it’s worth noting that there has been a decline in whale holdings as of this writing, indicating potential shifts in their strategies or market dynamics.
Negative flows dominate USDP flows
Analyzing the exchange netflow data from CryptoQuant, it becomes apparent that Paxos Dollar has experienced predominantly negative flows in recent weeks, with occasional positive flows. This pattern suggests that more USDP has been withdrawn from exchanges than deposited.
Source: CryptoQuant
However, an interesting exception occurred on 14 July, coinciding with a surge in volume and alternative cryptocurrencies (altcoins) prices. During this period, there was a notable influx of stablecoins across various exchanges, with USDP witnessing over 5 million units of positive netflow. However, the following day saw a return to negative netflow.
These observations implied that whales were engaged in an accumulation spree, patiently awaiting the opportunity to acquire volatile coins such as Bitcoin and other altcoins. Their actions are driven by the belief that a significant price spike was imminent across multiple cryptocurrencies.
