{"id":241510,"date":"2021-05-04T05:53:51","date_gmt":"2021-05-04T02:53:51","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/glassnode-predicts-btc-rally-as-stablecoin-supply-tags-record-highs\/"},"modified":"2021-05-04T05:53:51","modified_gmt":"2021-05-04T02:53:51","slug":"glassnode-predicts-btc-rally-as-stablecoin-supply-tags-record-highs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/glassnode-predicts-btc-rally-as-stablecoin-supply-tags-record-highs\/","title":{"rendered":"# Glassnode predicts BTC rally as stablecoin supply tags record highs"},"content":{"rendered":"

“# Glassnode predicts BTC rally as stablecoin supply tags record highs <\/strong>”<\/p>\n

The circulating supply of the four-largest stablecoins has spiked to new all-time highs, suggesting buyers could soon spark another leg up for the Bitcoin and crypto markets.<\/p>\n

The combined capitalization of Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and Dai (DAI) has surged almost 190% from $27 billion to almost $78 billion since the beginning of this year.<\/p>\n

In its May 3 Week on Chain<\/em> report<\/a>, on-chain analytics provider, Glassnode, noted that Tether is firmly positioned as the stable token sector\u2019s leader, representing two-thirds of the top four stablecoins\u2019 combined capitalization. USDT\u2019s total minted supply hit an all-time high of $51.78 billion at the end of last week after increasing by $1.48 billion or 3% in just seven days.<\/p>\n

USDC supply has also increased by roughly $1 billion over the past week, with its capitalization currently sitting at $14.5 billion, according to CoinGecko. It briefly tapp<\/a>ed a peak of $15 billion on April 30. <\/p>\n

BUSD\u2019s circulating supply tagged a record of $7.8 billion on May 3, while DAI\u2019s supply is at an all-time high of $3.9 billion as of this writing.<\/p>\n

With the surging supply, Glassnode highlights that Bitcoin\u2019s Stablecoin Supply Ratio (SSR), which measures the Bitcoin supply divided by the stablecoin supply, is sitting at a year-to-date low of 13.4, and is approaching its all-time-low of 9.6.<\/p>\n

Bitcoin-Stablecoin Supply Ratio: Glassnode<\/em><\/figcaption><\/figure>\n

The chart shows that SSR has been persistently low during 2020 and 2021 as stablecoin supplies have largely grown in proportion to Bitcoin\u2019s price appreciation. <\/p>\n

According to Glassnode, a decreasing SSR value is a bullish signal that the global stablecoin supply becoming larger relative to the Bitcoin market cap:<\/p>\n

\u201cAs the total supply of stablecoins increase, it suggests an increased ‘buying power’ of crypto-native capital that can be quickly exchanged and traded into BTC and other crypto-assets.\u201d<\/p>\n

Aave\u2019s liquidity mining incentives launched on April 27 would have also given a boost to stablecoin demand as the majority of the rewards were targeted towards staking USDT, USDC, and DAI. DeFi investors have observed<\/a> that Aave\u2019s yield farming had an immedia<\/a>te impact on stablecoin borrowing volumes which have over doubled since late April.<\/p>\n