Stablecoin accumulates "dry powder", signaling a major move ahead

In the context of Bitcoin, Ethereum, and XRP prices moving sideways, the supply of stablecoins has surged to a record high, creating a massive amount of "dry powder" ready to be deployed. This has split analysts into two camps: cautious and optimistic.

Current Situation

Record supply increase: The supply of #stablecoin has increased by 20% since February, reaching $160 billion, with $32 billion being held on exchanges. This amount of "dry powder" is the largest in crypto history.

Modest growth: Bitcoin is up 0.5% to $115,521, Ethereum is up 1.0% to $4,300, and XRP is up 1.2% to $3.01. Other altcoins also saw similar increases.

Divergent Analysis

Some analysts argue that the strong increase in stablecoins is a sign of caution. Illia Otychenko from CEX.IO notes that investors are in a "wait and see" mindset rather than rushing to deploy capital. This money will only enter the market when there are more positive signals regarding macroeconomic conditions.

Conversely, analysts from #B2BINPAY have a more optimistic view. They liken the accumulated stablecoin supply to "a compressed spring," ready to bounce strongly when a catalyst occurs. With 83% of traders expecting the Fed to cut interest rates in September, a positive signal from the Fed could lead to a significant influx of this capital into $BTC and $ETH , creating a larger and faster price surge than anticipated.

Source: #Decrypt