Stablecoin Supply Reaches $219 Billion

The total supply of stablecoin has reached $219 billion and continues to climb, suggesting the crypto bull run is still far from over, according to IntoTheBlock in a Friday statement.

Stablecoin Growth Indicates Ongoing Bull Cycle

Historical data shows that stablecoin supply typically peaks during market cycle highs. The previous peak was $187 billion in April 2022, just before the market began to decline.

Since the stablecoin supply is now higher than ever and increasing, this suggests that the market has not yet peaked and remains in a growth phase.

Bitcoin’s Resurgence

After dropping below $77,000 earlier this week, Bitcoin climbed above $85,000 on Friday morning. According to TradingView data, Bitcoin was trading at around $84,700, up 4.5% in the last 24 hours.

The recent resurgence of Bitcoin coincides with a rise in the market capitalization of major stablecoins, including USDT, USDC, BUSD, and DAI. Their combined market cap increased from around $204 billion to over $205 billion between March 10 and 14, according to Glassnode data.

Role of Stablecoins in the Market

Stablecoins serve as a bridge between fiat currencies and crypto markets, comprising the majority of crypto trading pairs and market liquidity. The rising market cap indicates higher stablecoin adoption and their growing role as a preferred medium for crypto transactions.

The increase in supply likely reflects a market-wide movement of assets into stablecoins in preparation for trading, suggesting anticipated market activity in the coming weeks.

The aggregate market cap of five leading stablecoins has increased over 28% since November 5, 2024, US Election Day.