Stablecoin Supply Hits $280B, but Here’s Why It’s Not All Bullish for Crypto
The post Stablecoin Supply Hits $280B, but Here’s Why It’s Not All Bullish for Crypto appeared on BitcoinEthereumNews.com.
The stablecoin supply in the crypto market hit $280 billion for the first time. At first, this sounds like a very bullish sign. Stablecoins are like cash in crypto. When more cash enters, traders often expect Bitcoin, Ethereum, and other tokens to rise. But the full story is not that simple. Much of this new supply is being used inside DeFi apps. That means the impact on prices is slower and less direct. Stablecoin Supply Breaks Records As per DefiLlama data, the total stablecoin supply has climbed to $280.46 billion. This record has been driven by heavy minting from Tether and Circle. Stablecoin Supply At Record High | Source: X In a single day, Tether added $1 billion USDT, while Circle minted $250 million USDC. Over the past month, the two issuers together have released about $8.75 billion in new stablecoins. Stablecoin Minting At Its Peak | Source: X For anyone new to crypto, stablecoins are digital tokens that are tied to the value of traditional currencies like the US dollar. They don’t rise and fall in price like Bitcoin, which makes them useful for holding money safely between trades. When more stablecoins enter the market, it usually means there’s extra cash that could move into crypto. But that money doesn’t always end up buying Bitcoin or Ethereum right away; sometimes it flows into DeFi apps or just sits idle. Stablecoins Prefer DeFi Over Exchanges Stablecoin supply, despite peaking, might not be moving into the exchanges anymore. At least not all of it. A sizeable chunk seems to be preferring the DeFi chains. Stablecoin Traffic Moving To DeFi Chains | Source: X Solana shows this clearly. In one week, it added almost $1 billion in stablecoins. That was about 10% growth. Ethereum, Tron, Avalanche, and Arbitrum also saw big inflows.…
