Stablecoin Supply Reaches Bottom, Signs For Bullish Sentiment!

Amid an “inevitable” bull market sentiment, the stablecoin supply has sharply decreased into the decentralized finance (DeFi) ecosystem. The movement is, however, predicted to be an addition for the upcoming market-push. 

A prominent crypto researcher and investor, Nic Carter recently shared a post noting that the supply of stablecoins has bottomed and it essentially means it “will be Up Only from here.”

going on record. as of 10/27/23, I believe that the supply of stables has bottomed and will be Up Only from here. reason being: crypto markets recovering, increased uptake of stables via fintechs/neobanks, new interest-bearing stables passing along t-bill rates, and emergence…

— nic carter (@nic__carter) October 27, 2023

Nic cites several reasons, adding that recent recovery in the crypto market and increase of neobank or fintech applications provides an alternate option to stablecoin. 

He also notes another reason as an emerging adoption of interest-bearing stables which are backed by other crypto assets. These stablecoins tends to move a sharp liquidity from the leading stablecoins such as USDT and USDC

Another crypto-twitter personality, Pentoshi also noted the sink in stablecoin supply and explained that “everyone who wanted to sell, has done so.” 

According to Pentoshi, The stablecoin supply has hit lows three months ago and the crypto market is now seeing remarkable inflows since last month after almost two years. 

A few thoughts about the state of the market leading into the $BTC ETFEveryone who wanted to sell, has done so. Stable coins bottomed 3 months ago, and for the first time in 2 years we are actually seeing INFLOWS. Early stage reversal signs. — Pentoshi euroPeng (@Pentosh1) October 25, 2023

The total stablecoin market is currently around $124 billion which topped to over $180 billion in April 2022. 

Read More

2023-11-04 10:12