The excellent supply of the four largest stable coins has reached new highsThis suggests that buyers could soon spark a fresh surge in the bitcoin and cryptocurrency markets.
The combined capitalization of Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Dai (DAI) is up nearly 190%: rose from $ 27 billion to nearly $ 78 billion since the beginning of this year.
The on-chain analytics provider Glassnode noted this in its May 3 Week on Chain report Tether is firmly positioned in the stablecoin market: it accounts for two-thirds of the total capitalization of the four largest stablecoin. Total minted supply from USDT hit an all-time high of $ 51.78 billion late last week, after rising $ 1.48 billion, or 3%, in just seven days.
USDC’s supply has also grown by around $ 1 billion over the past week, and its capitalization is currently at $ 14.5 billion.according to CoinGecko. On April 30, it briefly peaked at $ 15 billion.
BUSD’s standout offering hit a record $ 7.8 billion on May 3, while DAI’s offering hit an all-time high of $ 3.9 billion at the time of this issue.
With the increase in supply, Glassnode highlights Bitcoin’s stablecoin supply ratio (SSR), which measures the supply of Bitcoin divided by the supply of stable coins, is the lowest point of the year at 13.4 and is approaching its all-time low of 9.6.
The graphic shows that The SSR has been persistently low in 2020 and 2021 as the supply of stable coins has increased largely in proportion to the rise in the price of Bitcoin.
According to Glassnode A falling SSR is a bullish sign that the global supply of stable coins is increasing relative to Bitcoin’s market capitalization::
“As the overall supply of stable coins increases, this indicates greater purchasing power of cryptocapital that can be quickly exchanged and traded for BTC and other crypto assets.”
it is supposed that Aave’s liquidity mining incentives started on April 27th They also boosted demand for stable coins as most of the rewards were aimed at the use of USDT, USDC, and DAI. DeFi investors have watchedAave’s high-yield farming had an immediate impact on the stable coin credit volume, which has doubled since the end of April.