The circulating supply of the four largest stablecoins reached an all-time high. This means that buyers could trigger a new spike in Bitcoin and other crypto markets very soon.
The total market cap of Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Dai (DAI) has increased by almost 190 percent since the beginning of this year, from $ 27 billion to $ 78 billion.
On-chain analytics source Glassnode said in its May 3 Week on Chain report that Tether is the leader of the stablecoin industry, representing two-thirds of the total market capitalization of the four largest stablecoins. The USDT supply rose 3 percent, or $ 1.48 billion, in the past seven days alone, with the stablecoin market cap reaching an all-time high of $ 51.78 billion.
In the same period, USDC supply increased by approximately $ 1 billion and its market value reached $ 14.5 billion according to CoinGecko data.
The circulating supply of BUSD reached $ 7.8 billion on May 3, while the circulating supply of DAI rose to an all-time high of $ 3.9 billion.
The Bitcoin Stablecoin Supply Ratio (SSR), which divides the Bitcoin supply by the stablecoin supply, along with Glassnode’s increasing stablecoin supply, dropped to 13.4 points this year’s lowest, approaching its all-time low of 9.6 points.
The chart above shows that the SSR’s stablecoin supply was consistently low throughout 2021 and 2021. The falling SSR value, according to Glassnode, is a signal that the global stablecoin supply is on the rise compared to the Bitcoin market cap:
“Increasing the total supply of Stablecoins indicates increased purchasing power that can be used for BTC and other crypto assets.”