Stablecoins at $219B and climbing – Why the market isn’t topping out yet

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Crypto’s Secret Weapon

Stablecoins at $219B and climbing – Why the market isn’t topping out yet
  • Stablecoin supply growth hinted at ongoing liquidity
  • Rising stablecoin supply often precedes market rallies, but a plateau could signal a downturn

Now, this here market, it’s a right curious beast, driven by all sorts of things, like a mule with a hankering for dandelions. And stablecoin supply, well, that’s like a trusty compass, pointin’ us towards where this whole crypto ship is headed. 🤠

See, historically, when stablecoin supply gets all puffed up like a prize-winning pig, it usually means the market’s at its peak, ready to burst. Like back in April 2022, the supply hit $187 billion, and then, boom! The market took a tumble faster than a greased piglet at a county fair! 🐽

Stablecoins – Crypto’s quiet powerhouse

Now, these stablecoins, they’re the unsung heroes of the crypto world, always workin’ behind the scenes. They act like a bridge between the ol’ money and the newfangled digital stuff, keepin’ things flowin’ smooth. They’re like the reliable banker at a poker table, always there to lend a hand (or a stablecoin) when you need it.

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But beyond their practical uses, stablecoin supply tells us a whole lot about what folks are thinkin’. When supply goes up, it means folks are eager to get their hands on some crypto, like a gold rush in the Wild West. But when it starts to dry up, well, that’s a sign folks are gettin’ skittish, like a gambler seein’ his stack dwindle. 🎰

Current stablecoin supply trends

See, according to IntoTheBlock, we ain’t nowhere near the peak yet. We’re still in the middle of the ride, like a rollercoaster climbin’ towards the big drop. Stablecoin supply’s climbed to a whoppin’ $219 billion, beatin’ its old high from April 2022, right before the market went south. 📈

Now, history shows us that stablecoin supply tends to peak just before the market tops out, like a balloon reachin’ its limit before it pops. If we’re followin’ the script, this climbin’ supply could mean there’s more upside potential before the whole shebang comes crashin’ down.

Stablecoin peaks and market cycles

Stablecoin supply, it’s like a weather vane, always pointin’ us in the right direction. When supply goes up, it means folks are buyin’ and sellin’ like crazy, like a cattle drive in full swing. And when it starts to slow down, well, that’s a sign folks are gettin’ cautious, like a saloon owner seein’ a brawl brewin’.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Take April 2022, for instance. Stablecoin supply hit $187 billion, and then, bam! The bear market descended upon us. The same thing happened back in late 2021, when Bitcoin hit its all-time high, and stable

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2025-03-15 13:13