"The Era of $1 Trillion Stablecoins is Coming… Could it Trigger a Long-term Rally?"
Summary
- The rapid increase in "stablecoin" supply is drawing attention for its potential to trigger a long-term bullish trend in the cryptocurrency market.
- The current stablecoin supply could reach $1 trillion within the year, which is evaluated as a structural shift in the blockchain market.
- The increase in the total supply of the top 5 stablecoins suggests that the cryptocurrency market remains in the middle of an upward cycle.
As the supply of stablecoins rapidly increases, there is a growing outlook that the cryptocurrency market may experience a long-term bullish trend.
According to Cointelegraph, a cryptocurrency-focused media outlet, David Pakman, Managing Partner at CoinFund, stated that "the current stablecoin supply, which is around $225 billion, could surge to $1 trillion within this year," adding that "although this is insignificant compared to traditional financial markets, it represents a structural shift in the blockchain market."
There is also an interpretation that the market remains in the middle of an upward cycle as funds continue to flow into the stablecoin market. According to on-chain data platform Glassnode, as of the 28th, the total supply of the top 5 stablecoins has surpassed an all-time high of $219 billion. This figure has grown approximately 22 times since 2021.
Blockchain analysis company IntoTheBlock also analyzed that "the increasing trend in stablecoin supply suggests that the market has not yet reached its peak," indicating "a continuous flow of funds."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
