Stablecoin Supply Surges Alongside Bitcoin Rally
The total supply of stablecoins has seen a significant surge in recent weeks, coinciding with a rally in the price of Bitcoin (BTC), according to on-chain data. This growth in stablecoin supply follows a broader surge in the crypto market that began after a false report on October 16 about the approval of a spot Bitcoin exchange-traded fund (ETF) in the US.
During this same period, on-chain data revealed a notable increase in the supply of stablecoins, particularly Tether (USDT). On-chain analytics firm Glassnode highlights this surge in stablecoin supply as a strong indicator of net capital inflow into the crypto market.
“Stablecoins typically reflect investors’ demand for speculative capital,”
– Glassnode
