According to TechFlow, crypto analyst arndxt believes that the most critical indicator in the current cryptocurrency field is the total supply of stablecoins, and points out that the indicator is showing some positive signals.
Since Bitcoin broke through its all-time high in March, the supply of Tether (USDT), USD Coin (USDC), and DAI has increased by 14%, 13%, and 12%, respectively, while the supply of PayPal USD (PYUSD) has surged 300%, mainly on the Solana network.
The overall stablecoin supply grew by only 2% as BUSD and USDP supply fell by 17% and 42% respectively.
Arndxt expects that as Treasury yields fall, investors may allocate more funds to risky assets, including cryptocurrencies, further driving up the supply of stablecoins.
He believes that if this trend continues or accelerates, the total supply of stablecoins could break all-time highs in the coming months, which could foreshadow a rise in Bitcoin and the entire crypto market.
