The total supply of ERC20 stablecoins has reached a record high of $160 billion, according to a new report by CryptoQuant. This milestone underscores the significant role stablecoins play as a liquidity source in the crypto market. The report notes a strong correlation between stablecoin supply and Bitcoin price movements, suggesting that the current high supply could indicate sustained market buying power.
Historically, increases in stablecoin supply have preceded Bitcoin price surges, as seen in the bull markets of 2021 and 2024-2025. The research suggests that the current stablecoin supply level may signal the potential for another upward movement in Bitcoin's price, driven by the liquidity these stablecoins provide.
Stablecoin Supply Reaches $160 Billion, Signals Potential Bitcoin Price Surge
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