Despite some positive developments, the digital asset market is still missing a crucial element needed to drive a sustained price surge, as reported by the analytics firm CryptoQuant. According to CryptoQuant, there is a growing demand for Bitcoin (BTC) and Ethereum (ETH).

In the past 30 days, permanent holders have added 70,000 Bitcoin to their portfolios, with a 4.4% monthly increase in demand from large investors. These investors are injecting $1 billion daily into Bitcoin, reminiscent of the pre-rally activity seen in 2020. Ethereum’s demand has also seen a significant uptick, particularly after May 20th, following the approval of spot ETH ETFs in the USA. Daily purchases by permanent holders have risen to 40,000 ETH, while large investors currently hold 16 million ETH.

However, CryptoQuant emphasizes that stablecoin liquidity must recover to support a sustained rally in the crypto market. The growth in the market capitalization of Tether’s USDT, a key indicator of fresh liquidity in the crypto markets, has been slowing down and is now at its slowest pace since February 11. Typically, price rallies are accompanied by an increase in stablecoin liquidity growth.

USDT remains the top stablecoin by market cap, aiming to maintain a 1:1 peg to the US dollar. At the time of writing, Bitcoin is trading at $70,812, showing a nearly 4% increase in the past week. ETH is trading at $3,809, with a 1.5% increase in the past week.

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