The unprecedented $300 billion stablecoin market capitalization may indicate an influx of investor capital into on-chain activities, potentially serving as “rocket fuel” for cryptocurrency prices, according to market analysts.
On Friday, the total stablecoin supply hit a new high of over $300 billion, reflecting a 46.8% year-to-date increase that could surpass last year’s stablecoin market growth, as reported by Cointelegraph.
This milestone coincides with the onset of October, which has historically been the second-best month for Bitcoin (BTC), boosting investor optimism about a possible “Uptober” rally.
“While the stablecoin supply has crossed the $300 billion mark, this capital is actively moving in the markets rather than sitting idle,” stated Andrei Grachev, founding partner at the synthetic dollar protocol Falcon Finance.
“Transaction volumes are in the trillions every month. Velocity metrics indicate consistent activity across networks,” Grachev told Cointelegraph. “These stablecoins are in use—not merely held. This is capital in action, not capital on standby.”
“Stablecoins facilitate trade settlements, fund positions, and offer users dollar access where traditional banks may not suffice,” he added.
Stablecoins offer various use cases beyond investment, such as payments, remittances, merchant transactions, and savings. An increasing supply may also suggest a rise in 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 the $300 billion milestone could signify a “rebound in digital assets”, along with the growing integration of stablecoins within global finance, according to Ricardo Santos, chief technical officer at the stablecoin-powered fintech payment company Mansa Finance.
Santos noted that the stablecoin supply’s “growth is often seen as a source of fresh dollar-equivalent liquidity that can quickly flow into Bitcoin, Ethereum, or altcoins.” He remarked, “In this context, the $300 billion level resembles rocket fuel for the upcoming market cycle.”
Santos highlighted stablecoin adoption in countries like Nigeria, Turkey, and Argentina, where residents utilize US dollar-pegged tokens as “de facto dollars” for daily transactions.
Furthermore, global financial entities like Visa are integrating stablecoins into payment systems, further cementing their role in mainstream financial infrastructure.
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In the past month, Circle has minted $8 billion worth of USDC (USDC) on the Solana network alone, 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 well-known crypto trader Kyle Doops, who anticipates that the record stablecoin supply will soon flow into the cryptocurrency market.
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