TL;DR
Internal liquidity in the cryptocurrency market remains at record levels, despite recent short-term setbacks, which implies a potential period of sustained growth. The on-chain analytics platform CryptoQuant, in its latest analysis, confirms that the supply of stablecoins continues to hover near its all-time highs this month.
The total supply of ERC-20 stablecoins on the Ethereum network alone has reached an unprecedented figure of $185 billion, a new all-time high that remains firm in November. This growth, according to CryptoQuant contributor XWIN Research Japan, is more “consistent than Bitcoin’s price and directly reflects capital entering the crypto ecosystem.”
The supply of stablecoins is considered a superior performance metric to traditional macroeconomic indicators, such as the global M2 money supply, for several reasons.
Firstly, it is the primary source of liquidity for trading on DEXs, lending, and derivatives. Secondly, it adjusts quickly, capturing investment flows faster than monthly M2 data. Finally, it tracks institutional and ETF-related inflows into crypto.
The trend is clearly reflected on the largest global exchange, Binance, as confirmed by CryptoQuant analysts. Stablecoin reserves on Binance have skyrocketed, contrasting sharply with the declining reserves of both Bitcoin and Ether.
This unusual combination (decreasing coin supply and surging stablecoin reserves) is interpreted as the accumulation of “dry powder” by traders. It suggests that investors have been taking profits at price peaks and are now waiting on the sidelines with massive liquidity. This volume of stablecoins on the exchange acts like a “compressed spring” that, upon a price correction or macroeconomic stabilization, could provide the fuel for a new explosive move.
In other words, the market is currently in a phase of “armed patience.”
