More and more stablecoins means more and more U, so it should be a bottom-fishing and pull-up! Right?
Analysis: Stablecoin supply is expected to increase further, and new highs are expected in the coming months
Crypto KOL @arndxt_xo posted on the X platform: "In my opinion, the total stablecoin supply chart is the most important indicator in the crypto field at present, and it shows some promising signs.
Since Bitcoin fell after hitting a record high in March this year, I have noticed the following:
•USDT supply increased by 14%;
•USDC supply increased by 13%;
•DAI supply increased by 12%;
•PYUSD supply increased by 300% (mainly on the Solana chain).
But not all stablecoin supplies are growing, and the total supply increased by only 2%, mainly due to:
•BUSD supply decreased by 17%;
•USDP supply decreased 42% (likely due to Binance changing its stablecoin strategy).
As Treasury yields fall, I expect the supply of stablecoins to increase further. As investors may allocate more funds to riskier assets, including cryptocurrencies.
If this trend continues (or even accelerates), we could see the total supply of stablecoins firmly break through its all-time highs in the coming months, which could boost Bitcoin and the broader crypto market. ”