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On-Chain Data Shows Surge In Stablecoins Supply Pouring Into Bitcoin

On-chain data shows a recent rise in the number of stablecoin addresses sending to exchanges, suggesting an increase in dry powder supply pumping into Bitcoin.

Stablecoins Exchange Inflow Addresses Count Recently Surges

As pointed out by a CryptoQuant post, the number of stablecoin addresses making inflow transactions to exchanges saw a sharp rise yesterday.

Stablecoins are tokens that have their values tied to a fiat currency. Since they are relatively stable (as their name suggests), investors like to use them for temporarily pulling out of volatile markets like Bitcoin.

The “all stablecoins: all exchanges inflow addresses count” is an indicator that shows the total number of these fiat token addresses that are sending their coins to exchange wallets.

A spike in the metric’s value means there is an increase in the supply of stablecoins for transferring to other cryptos. This could suggest investors believe now may be a lucrative entrance into volatile markets, and so they are converting their fiat-tied coins to BTC and other cryptocurrencies. They may also be looking to withdraw the coins into fiat.

Related Reading | Bitcoin Bullish Signal: Whales Are Building Their Positions On Derivatives

Now, here is a chart that shows the trend in the indicator’s value over the last week:

The stablecoins inflow addresses count showed a huge spike yesterday | Source: CryptoQuant

As the above graph shows, the indicator showed a very large value yesterday, implying that a lot of investors sent their coins to exchanges at that time.

The reason behind the trend could be the recent correction that Bitcoin suffered after making its new ATH. Investors may be bullish on the future price of the coin and find that this dip is a good buying opportunity.

One that thing should be noted is that not the entire stablecoins supply moving into exchanges will be pouring into Bitcoin. A percentage of them will go into altcoins and another will be withdrawn into fiat or kept on exchanges.

Related Reading | Is China Considering Lifting The Bitcoin Mining Ban? The NDRC Runs Public Survey

Nonetheless, a surge in the total supply is still a good sign for BTC and may help the coin bounce back from the correction. Sustained such inflows can prove to be bullish and take the crypto to higher all-time highs (ATHs).

Bitcoin Price

At the time of writing, BTC’s price floats around $63k, up 4% in the last seven days. Over the past month, the crypto has gained 48% in value.

The below chart shows the trend in the price of the coin over the last five days:

BTC’s price observes a correction in the last few days, but now looks to be making a come back | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

How to connect to a geth authority in web3py?

Here is some code to connect to a geth authority using web3py: >>> from web3.auto.gethdev import w3 # confirm that the connection succeeded >>> w3.isConnected() True When I run isConnected I get False. I see some chatter on the Internet about connecting to a local authority, but I don’t want to run one. I’d like::Listen

Here is some code to connect to a geth authority using web3py:

>>> from web3.auto.gethdev import w3  # confirm that the connection succeeded >>> w3.isConnected() True 

When I run isConnected I get False. I see some chatter on the Internet about connecting to a local authority, but I don’t want to run one. I’d like to connect to a service, like Infura, but I don’t see docs for that.

How do I connect?

NOTE: what I’m really trying to do is get the ENS name for an address using web3py. Here is a name function for that, but when I try to run an example, I get

web3.exceptions.ExtraDataLengthError: The field extraData is 97 bytes, but should be 32. It is quite likely that you are connected to a POA chain. Refer to http://web3py.readthedocs.io/en/stable/middleware.html#geth-style-proof-of-authority for more details.

When I read that link, it wants me to use some middleware connected to an IPCProvider at a local file. I don’t have a local file, I don’t want a local file. So I am in deep.

Here is a question that has some code for the middleware, but it doesn’t work.

On-Chain Data Shows Surge In Stablecoins Supply Pouring Into Bitcoin

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