$ETH Per DefiLlama, the aggregate stablecoin supply has a record high of $236.6 billion, and its growth during the last week alone was $2.135 billion. That's no small sum, but a mammoth 'powder keg' that is quietly gathering steam for the next set of price hikes in Bitcoin and altcoins.
Why is this so significant? Let's analyze in depth:
1. Stablecoin inflow = excess liquidity = money is waiting to enter ????
A rise in stablecoin supply tends to be viewed as a harbinger of future buying power in the market.
In simple terms, a rise in stablecoins indicates more money is available to buy coins, not leave the market.
Historically, every time there's a spike in stablecoin supply, it is followed by a major reversal in Bitcoin and altcoins. The situation is repeating itself this time:
Stablecoins are at an all-time high.
Funds are on standby waiting for a catalyst (i.e., BTC breaking $100,000).
Market mood has rapidly become bullish.