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

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.

Let’s break down what’s happening and why it matters.

Massive Stablecoin Inflows in 2024

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.

Binance’s Market Share Explosion

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.

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.

This helps push prices higher across the crypto market, especially for Bitcoin.

Exchange Reserves Hold the Power 

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.

As more stablecoins flow into Binance and other exchanges, they will likely continue to shape market trends and fuel further price rallies.

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.