Fun

Stablecoins Supply Up By $20 Billion – The Key To Bitcoin’s Next Move?

News Feed - 2025-03-15 06:03:19

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español.


Early in 2025, there was a significant surge in the stablecoin market, with a $20 billion increase in total supply. With a 10% increase from January, the total supply now stands at almost $205 billion. The spike, according to data from Glassnode, comes after a dip in late 2024, when the supply of stablecoins fell from $187 billion to $185 billion. Related Reading Bitcoin And S&P Decline Together, But Data Predicts A Turnaround 18 hours ago Stablecoins See A Strong Rebound


For trading cryptocurrencies, stablecoins—like USDT and USDC—often act as a reserve for investors expecting the right time to buy assets like Bitcoin. The most recent rise shows that investor interest has surged, especially in view of last year’s slow down. Since Jan 1, the aggregate #stablecoin supply has increased by $20.17B (+10.9%), now reaching more than $205B.


For comparison, the December peak clocked in at $187B but the supply actually contracted in the last two weeks of 2024 and dropped to $185B by January 2025. pic.twitter.com/gQbdMEDisb


— glassnode (@glassnode) March 13, 2025


Given the previous fall, this comeback is especially notable. For most of 2024 the market has been losing stablecoins; but, this trend has lately reversed. Although past patterns suggest that Bitcoin’s price may be impacted, it is unknown whether this increase will lead to a rise in purchases of cryptocurrencies.


Bitcoin Investors Watching Closely


A growing stablecoin supply is often seen as a bullish sign for Bitcoin. Historically, the price of Bitcoin has risen in line with the stablecoin count. The reasoning is simple: more stablecoins mean more potential capital just waiting to be entered into the market.


Some analysts believe this fresh injection could push Bitcoin higher. However, not all stablecoins are used for trading. Many are held for remittances, payments, or as a hedge against inflation, especially in countries where local currencies are unstable.


As of today, the market cap of cryptocurrencies stood at $2.65 trillion. Chart: TradingView Stablecoin Exchange Holdings Drop 21%


While the total supply is rising, only 21% of stablecoins are currently sitting on exchanges. This is a significant drop from 2021, when over 50% of the supply was available for immediate trading, Glassnode disclosed. This shift suggests that while new coins are being issued, they are not all being deployed into crypto markets right away. Related Reading TRUMP Token Takedown—Did Insiders Plan The Crash? 1 day ago


This could point to one of two possibilities: either stablecoins are being used more often outside of exchanges or investors are still waiting for the suitable moment. Should the latter prove right, the impact on Bitcoin could be less notable than expected. What This Means For Bitcoin’s Future


The stablecoin market is currently experiencing a resurgence, which is generally a favorable development for the cryptocurrency sector. However, it is uncertain whether this will result in a short-term increase in the price of Bitcoin. Stablecoin utilization has fluctuated, and additional economic variables will contribute to this development.


At the time of writing, Bitcoin was trading at 82,264, down 1.1% and 6.9% in the daily and weekly frames.


Featured image from Warwick Business School, chart from TradingView

News Feed

Prashant Jha13 hours agoAbracadabra proposes hiking loan interest rate by 200% to manage Curve riskThe Curve Finance exploit has created a liquidity crisis in the DeFi ecosystem, with several lending protocols rushing to
XRP Analyst Marks XDC For 3,350% Take-Off As Bullish Metrics Emerge
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Musk on Crypto Twitter’s ‘Most Annoying Problem,’ Bored Ape NFTs, Mt Gox Bitcoins, and More — Bitcoin.com News Week in Review
Musk on Crypto Twitter"s "Most Annoying Problem," Bored Ape NFTs, Mt Gox Bitcoins, and More — Bitcoin.com News Week in Review Another week has passed in the action-packed world o
Zhiyuan Sun5 hours agoSu Zhu’s $36M mansion transformed into eco-farm post-3AC collapse: ReportThe 3AC co-founder purchased the Singaporean bungalow in March 2022, shortly before the hedge fund collapsed.893 Total view
Zhiyuan Sun2 hours agoUniswap to charge 0.15% swap fees beginning Oct. 17Fees will not be collected on inter-stablecoin trades, nor on wrapping Ether.1166 Total views7 Total sharesListen to article 0:00NewsJoin us on soc
Apple’s CEO Owns Crypto – Tim Cook Thinks ‘It’s Reasonable to Own as Part of a Diversified Portfolio’
Apple"s CEO Owns Crypto - Tim Cook Thinks "It’s Reasonable to Own as Part of a Diversified Portfolio" The CEO of the tech giant Apple, Tim Cook disclosed that he owns cryptocurre
Bitcoin, Ethereum Technical Analysis: BTC Jumps to 6-Month High Above $24,000
Bitcoin, Ethereum Technical Analysis: BTC Jumps to 6-Month High Above $24,000 Bitcoin surged above $24,000 on Feb. 02, as markets continued to react to the latest U.S. Federal Rese
Coinbase Receives Approval to Offer Full Suite of Crypto Products in Netherlands
Coinbase Receives Approval to Offer Full Suite of Crypto Products in Netherlands Crypto exchange Coinbase has received approval to offer its full suite of retail and institutional
$1.6B port investment could revive El Salvador’s Bitcoin City plans
Derek Andersen5 hours ago$1.6B port investment could revive El Salvador’s Bitcoin City plansThe Turkish Yilport Holdings made the largest-ever private investment in El Salvador and will develop the port at the proposed
Marathon Digital revenue surges 452% in Q4 amid ‘banner year’
Martin Young2 hours agoMarathon Digital revenue surges 452% in Q4 amid ‘banner year’Company stock dipped slightly despite the bumper earnings report, though MARA has gained 300% over the past 12 months.1206 Total vie
Shiba Inu Whale Activity Plunges 79% In Three Months — What’s Happening?
Este artículo también está disponible en español. The meme coin market has seen a remarkable transformation in the past year, large-cap tokens like Dogecoin (DOGE) and Sh
Dogecoin Eyes $1.80 In Summer Rally As Analyst Flags Breakout Structure
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu