[Analysis] "Stablecoin deposit volume↑…signals a bull market"

Exchange deposits of stablecoins (virtual assets whose value is linked to fiat currency), the core liquidity of the virtual asset (cryptocurrency) market, have surged.

On the 7th (Korea time), CryptoQuant contributor 'XWIN Research Japan' wrote in a report, "As of September, exchange-held stablecoins are at a record high of 59 billion dollars," and analyzed, "A sharp rise in stablecoin deposits means a high likelihood that a bull market will arrive."

Stablecoin flows in the market are used as a useful indicator for gauging investors' trading sentiment. An increase in net inflows to exchanges indicates that investors are preparing to trade virtual assets. Conversely, an increase in net outflows of stablecoins indicates a move into decentralized finance (DeFi·DeFi) or payments.

The contributor explained, "The SSR indicator, which represents the stablecoin supply ratio relative to Bitcoin (BTC) market capitalization, is at its lowest level in years," adding, "This means dollar liquidity is abundant."

He added, "Since liquidity is currently accumulated at a record high, it suggests the possibility of a bull market arriving in the future."