The stablecoin market has reached a record $300 billion in capitalization, indicating that a greater influx of investor capital is moving on-chain, which may serve as “rocket fuel” for cryptocurrency valuations, per market analysts.
As of Friday, the total stablecoin supply has surpassed $300 billion, reflecting a year-to-date growth rate of 46.8%—a pace that could exceed last year’s expansion, according to Cointelegraph.
This milestone arrives at the beginning of October, traditionally the second-best month for Bitcoin (BTC), bolstering positive sentiment regarding a potential “Uptober” rally.
“While stablecoin supply may have crossed the $300 billion mark, this does not mean the capital is idly waiting. It is actively flowing through markets,” said Andrei Grachev, founding partner at synthetic dollar protocol Falcon Finance.
“Monthly transfer volumes are in the trillions. Velocity metrics indicate ongoing activity across networks,” Grachev explained to Cointelegraph. “This capital is being utilized—not merely held. It’s capital in action, not on pause.”
“Stablecoins facilitate trades, finance positions, and provide users access to dollars in ways that traditional banks may not,” he added.
Stablecoins serve various functions beyond investment, such as payments, remittances, merchant transactions, and saving. An increasing supply may also point to higher stablecoin usage for everyday payments or institutional transactions.
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$300 billion stablecoin supply may be “rocket fuel” for crypto
The $300 billion landmark could symbolize a “rebound in digital assets” along with the increasing integration of stablecoins into global finance, according to Ricardo Santos, chief technical officer at stablecoin-centric fintech payment firm Mansa Finance.
Santos noted that the expansion of stablecoin supply is typically viewed as a signal of new dollar-equivalent liquidity that can quickly flow into Bitcoin, Ethereum, or altcoins. “In this context, the $300 billion mark resembles rocket fuel for the upcoming market cycle,” he stated.
He highlighted stablecoin usage in countries like Nigeria, Turkey, and Argentina, where residents rely on US dollar-pegged tokens as “de facto dollars” for daily transactions.
Further, global financial entities like Visa are incorporating stablecoins into payment systems, further entrenching them in conventional financial structures.
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In the last month, Circle has minted $8 billion worth of USDC (USDC) on the Solana network alone, of which $750 million was minted on Thursday, according to data from Lookonchain’s X post.
“Capital rarely remains idle for long,” noted technical analyst and well-known crypto trader Kyle Doops, who anticipates that the record stablecoin supply will soon flow into the cryptocurrency market.
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