How to determine the start of a bull market cycle, the simplest way is to pay attention to the growth dynamics of stablecoins. This is not just theoretical; it is a real indicator of the potential historic wave in the crypto market.
Stablecoins can be said to be the lifeblood of cryptocurrencies; they are the pillars of trading, liquidity management, and even value storage.
Therefore, when stablecoin liquidity flows back into the market, we may see a massive shift in momentum.
The largest token, Tether (USDT), has seen explosive growth this year, with its market cap increasing from $90 billion at the beginning of 2024 to $120 billion.
Stablecoins are not just 'digital dollars'—they are reserves of the crypto ecosystem. When investors hold stablecoins, they are effectively keeping funds off the market, ready to deploy at any time.
Currently, the stablecoin market has a support amount exceeding $176 billion, which can generate huge developmental momentum once injected into the cryptocurrency market.
When this liquidity flows into Bitcoin and other assets, it acts as a catalyst, historically similar events have triggered massive bull markets.
Stablecoins are indicators of market 'fuel' reserves. With Tether and other stablecoins approaching historical highs, there is plenty of 'fuel' in the tank.
If Tether's 60-day market cap changes slow down, the 'fuel' supply hasn't decreased; on the contrary, it is waiting for the right moment to push the market forward.
This influx will not only affect Bitcoin. As stablecoins become more prevalent throughout the crypto space, they provide liquidity for low-supply assets, exerting upward pressure on prices.
Whether it's Bitcoin, Ethereum, or altcoins, when this capital flows in, it could catalyze a widespread market surge.
Stablecoins not only have high balances, but their injection rates are also equally important. When Tether's market cap increases by tens of billions in just a few days, it indicates confidence and new capital flowing into the crypto space.
Earlier this year, Tether's 60-day increase exceeded $12 billion in April, but has recently slowed to below $3 billion.
This gradual slowdown means stablecoins may soon re-enter the market, triggering a wave of buying.
One can imagine it as a controllable release dam: a slight increase can bring stable growth, while a full release may lead to a liquidity flood, potentially triggering the largest bull market in crypto history.
The upcoming bull market is not just a traditional cycle; it is driven by a deeper understanding of liquidity fueled by stablecoins.
Past runs mainly relied on speculation, but today's market has changed.
Institutional adoption in some regions, DeFi maturity, and regulatory clarity provide a more solid foundation for a stablecoin-driven bull market.
Unlike in 2017 or 2020, stablecoins now play an indispensable role in the cryptocurrency financial infrastructure.
They provide a liquid, secure store of value, deployable with a click, giving investors greater flexibility and confidence than ever before.
This accessibility means that when the market is ready, investors can almost immediately take action to re-inject stablecoin liquidity back into the market.
They are silent giants, growing quietly, waiting for the right moment to re-enter the market and trigger unprecedented momentum.
BTC - Continuing to break upward to $77,000. It is worth mentioning that BlackRock's Bitcoin ETF now exceeds its gold ETF in scale, new records are continuously being set, and higher ATHs are not far off.
ETH - After three months, Ethereum has finally risen above $3,000, Bitcoin has set a historical high, while Ethereum has not yet. Don't listen to others saying 'this time is different', believe that Ethereum will catch up and eventually form muscle memory.
SOL - Solana has risen above $200 for the first time since March, the ecosystem is fully blossoming, and the meme chain is thriving, truly deserving to be the strongest public chain leader, looking forward to higher.
BNB - BNB has also begun to move, successfully breaking through $600, as previously mentioned, it seems a new mining project is about to emerge.
TON - With the overflow of funds, TON ecosystem projects are also experiencing a strong rebound, with projects like HMSTR, DOGS, NOT successfully making the daily gainers list.
MNT - Unlike other L2 tokens, they have developed and incubated mETH, cmETH (COOK), and FBTC.
And for users and MNT holders on-chain, many revenue opportunities have been created, making this round cycle a noteworthy marker.
RAY - The main liquidity DEX on Solana, with trading volume larger than UNI, higher token yields, and lower valuations, as mentioned multiple times in previous articles.
In any case, I think the market is quite hot right now, and I wouldn't be surprised if there is a pullback in the short term.
But from a longer time frame, I still think RAY is severely undervalued.
ENA - Wintermute hopes to share protocol revenue with token holders, reducing USDE rewards, but aligning holder incentives with protocol growth is quite good.
AERO - Data from trading, active wallets, and TVL growth indicates that Base occupies a major position in the Ethereum system.
And AERO is the best utility project on Base, successfully surpassing Uniswap, with trading volume continuously breaking historical highs and sharing profits with the community.
If you believe ETH will perform well, then Base will also perform well; if Base performs well, then AERO will also perform well, so I bought some.
TIA - Last week, spot trading volume reached its highest point in over a year, with K-line data indicating that TIA will see an upward breakout inflection point.
Despite the large amount of unlocked tokens, strong support indicates that venture capitalists are unwilling to sell tokens at this price but instead hold on to their tokens.
ORCA - Can be seen as the beta version of RAY, Orca handles a large volume of transactions on Solana, and in my view, it should not be underestimated.
INST - The new mechanism of Lending + DEX + Vault maximizes capital efficiency, and among many old DeFi projects, it can be considered old trees blooming, tripling in just a few days.
GRASS - Slight pullback after nearly half a month of upward movement, expected to undergo a washout period.
Please remember, if you view your positions as long-term investments, then market downturns should be seen as gifts. They provide opportunities to buy more tokens.
Finally, it is crucial to develop a strategy before making any purchases, and never invest all your funds.
I hope this topic helps you, 🙏 thank you all for liking and supporting 👍
