According to Cointelegraph, CryptoQuant founder and CEO Ki Young Ju recently explained that although the supply of stablecoins continues to grow, the new trading volume is not enough to create sufficient buy-side liquidity to drive up Bitcoin prices.
He noted that the current exchange reserve ratio of Bitcoin to stablecoins is about 6:1, meaning that there are six times as many Bitcoins held on exchanges as stablecoins. In September 2021, stablecoin reserves were worth about $30 billion.
Currently, the entire stablecoin market value is about 166 billion US dollars, but only 21% of stablecoins are used for transactions, far lower than 50% in 2021. Ki Young Ju believes that although the supply of stablecoins continues to grow, in the current market cycle, stablecoins are mainly used for other purposes rather than transactions.
