The milestone of $300 billion in stablecoin market capitalization could indicate that more investor capital is flowing onchain, potentially acting as “rocket fuel” for cryptocurrency valuations, according to market analysts.
As of Friday, the total stablecoin supply has reached a new high of over $300 billion, reflecting a 46.8% year-to-date growth rate that may surpass the previous year’s stablecoin market growth, as reported by Cointelegraph.
This record comes as October begins, historically the second-best month for Bitcoin (BTC), bolstering investor optimism regarding a potential “Uptober” rally.
“While stablecoin supply may have surpassed $300 billion, it is not idle capital. It is actively moving through markets,” stated Andrei Grachev, founding partner at synthetic dollar protocol Falcon Finance.
“Transfer volumes are in the trillions monthly. Velocity metrics indicate ongoing activity across networks,” Grachev explained to Cointelegraph. “These assets are being utilized—not just held. This represents capital in action, not capital on standby.”
“Stablecoins are facilitating trades, funding positions, and providing users with dollar access where banks fall short,” he added.
Stablecoins serve various purposes beyond investment, including payments, remittances, merchant transactions, and savings. An increase in supply may also indicate more stablecoin usage for everyday payments or institutional settlements.
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$300 billion stablecoin supply may be “rocket fuel” for crypto
The achievement of a $300 billion milestone may indicate a “rebound in digital assets” coupled with the growing integration of stablecoins into global finance, according to Ricardo Santos, chief technical officer at stablecoin-based fintech payment company Mansa Finance.
The “expansion of stablecoin supply is often seen as a sign of fresh dollar-equivalent liquidity that can swiftly transition into Bitcoin, Ethereum, or altcoins,” he told Cointelegraph. “In this context, the $300 billion threshold appears to serve as rocket fuel for the next market cycle.”
Santos highlighted stablecoin adoption in nations like Nigeria, Turkey, and Argentina, where residents utilize US dollar-pegged tokens as “de facto dollars” for daily transactions.
Global financial players like Visa are also incorporating stablecoins into payment systems, further embedding them into mainstream financial frameworks.
Related: Bitcoin ETFs kickstart ‘Uptober’ with $3.2B in second-best week on record
In the past month, Circle minted $8 billion worth of USDC (USDC) solely on the Solana network, with $750 million minted on Thursday, according to blockchain data platform Lookonchain’s X post.
“Capital doesn’t remain idle for long,” noted technical analyst and popular crypto trader Kyle Doops, who anticipates that the record stablecoin supply will soon flow into the cryptocurrency market.
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