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- On-chain analyst Lookonchain observed 33.9 million USDT stablecoins being withdrawn from Circle and subsequently deposited into Kraken.
- The USDT was initially USDC, which was exchanged and directed to Kraken through two distinct transactions.
- Santiment reported an increase in Tether stablecoin activity, with both active wallets and exchange deposits reaching levels not seen in several months.
Recently, on-chain analyst Lookonchain monitored two wallets that collectively withdrew 33.9 million USDT stablecoins from Circle and deposited them into the prominent U.S. exchange Kraken.
Although the identity of the entity behind these wallets remains unknown, Lookonchain speculates that the same institution manages both addresses due to the closely timed USDT transfers.
It appears that an institution has infused $33.9 million into the cryptocurrency market.
0x6A55 and 0x57B4 (likely the same entity) withdrew $USDC from #Circle, exchanged $USDC for $USDT, and then deposited $USDT to #Kraken, totaling 33.9M $USDT deposited to #Kraken. pic.twitter.com/6MqvtBcNKL— Lookonchain (@lookonchain) October 11, 2023
The USDT was initially USDC before being exchanged and sent to Kraken in two separate transactions.
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Santiment identified spike in USDT activity
In the meantime, Santiment highlighted a general increase in Tether activity, with active wallets and exchange deposits reaching multi-month peaks.
Wallets containing between 1 million and 10 million Tether have ramped up their stablecoin acquisitions. A greater volume of the stablecoin seems to be mobilizing in preparation for potential cryptocurrency purchases.
While the reasons behind the enigmatic $34 million transfer are not fully understood, it illustrates the rising stablecoin activity occurring behind the scenes.
Large over-the-counter (OTC) transactions directly with exchanges enable significant players to accumulate cryptocurrency without causing immediate price fluctuations. However, such movements often precede market shifts.
If institutional investments are re-entering the crypto space, brokers like Kraken may benefit from the demand for OTC desks. The on-chain data provides insights into the growing trading interest developing beneath the surface.
