Although it remains under the radar, the supply of ERC-20 stablecoins has resumed its upward trajectory, recently reaching a new all-time high.
Currently standing at $121 billion, this milestone confirms the continued relevance and vitality of the stablecoin ecosystem.
- Why is this growth in market capitalization significant ?
It signals the injection of fresh liquidity into the crypto market. Unlike fixed-supply assets, most stablecoins are minted dynamically according to demand and purchasing activity.
Additionally, their supply expands to support the operational needs of various protocols and centralized exchanges facing increased demand and potential insufficient reserves.
At present, stablecoins market conditions remain relatively neutral.
However, a sustained increase in stablecoin supply would constitute a strong and and very promising signal.
Written by Darkfost