While the supply of stablecoins is on the rise, this factor alone is insufficient to significantly boost the price of the leading cryptocurrency. This view was expressed by CryptoQuant CEO Ki Young Ju, as reported by Cointelegraph.
According to him, today “stablecoins” are primarily used for transfers or as a store of value in countries with rapidly depreciating fiat currencies, rather than for trading.
Ju noted that currently only 21% of the total stablecoin supply is held on exchanges for trading purposes. In 2021, this figure was over 50%, indicating a shift in trend in the current market cycle.
In October, CryptoQuant concluded that the increase in stablecoin capitalization in August-September could extend the upward trend of Bitcoin and other major cryptocurrencies. At that time, analysts described stablecoins as the “circulatory system” of the digital asset market.
According to CoinMarketCap, at the time of writing, the market capitalization of the segment stands at $179 billion. The undisputed leader remains USDT with a figure of $120.5 billion, followed by USDC ($34.9 billion) and DAI ($5.4 billion).
Earlier in October, the CEO of CryptoQuant predicted the adoption of Bitcoin as a global currency by 2030.