BTC/Stablecoin Market Cap Ratio (SSR): Insight into the liquidity code behind the price!
The index is calculated by dividing the market value of BTC by the total market value of stablecoins (USDT, USDC, DAI combined). The resulting ratio reflects the market value multiple between the two, so it is also called the "Stablecoin Supply Ratio", hereinafter referred to as SSR.
Market value naturally has a bubble attribute. Just like a stablecoin with a scale of only 200 billion US dollars, it can support a cryptocurrency market of up to 3 trillion US dollars.
The SSR of BTC actually represents the ability of the current mainstream cryptocurrency in the market to draw liquidity from the "fund pool" of stablecoins. Imagine that many tokens in the entire cryptocurrency market are competing for resources, just like countries on the earth. Those who obtain more "resources" have relatively higher SSR.
This is similar to the price-earnings ratio of the stock market. However, cryptocurrencies generally lack their own profitability attributes, or profits account for a very small proportion of the market value, so they cannot be simply equated, and can only be roughly understood by analogy.
In short, in the cryptocurrency market, the higher the SSR, the more dominant the cryptocurrency is, which means more success.
