Cryptocurrency exchange Bybit has released its twelfth proof of reserve, showcasing a 17.8% increase in USDT holdings.

Crypto investors are demonstrating a growing preference for stablecoins. Bybit’s latest proof of reserve revealed nearly an 18% increase in customers’ holdings in Tether (USDT). According to the exchange’s report, users’ USDT balances grew by 433 million USDT as of Jul. 10, marking a 17.8% rise from Jun. 6.

The report also highlighted a significant increase in Circle’s USD Coin (USDC), with deposits surging by over 150 million USDC, representing a nearly 400% jump from June. Conversely, the algorithmic stablecoin DAI, issued by MakerDAO, experienced a decline, with holdings decreasing by 33% over the same period.

Meanwhile, holdings of traditional cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) saw modest gains of 5.62% and 0.46%, respectively. This suggests that traders might be reallocating their liquidity from stablecoins into more volatile crypto assets.

The uptick in stablecoin holdings coincides with a rising market capitalization in the sector, as Bitcoin appears to have reached a local price bottom. CryptoQuant CEO Ki Young Ju noted in a recent post that the stablecoin market cap hit an all-time high earlier in July, with USDT comprising 70% of the total market.

While Ju acknowledged that current liquidity levels might not significantly impact price movements, he deemed the upward trend as “noteworthy” given the prevailing market conditions.

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