Data: The decline in government bond yields will drive an increase in the supply of stablecoins, thereby prompting a new round of BTC growth

ChainCatcher news, crypto analyst arndxt recently expressed the view that the most critical indicator in the current cryptocurrency space is the total supply of stablecoins, noting that this indicator is showing some positive signals.

Since Bitcoin broke its all-time high in March, the supply of Tether (USDT), USD Coin (USDC), and DAI has increased by 14%, 13%, and 12% respectively, while the supply of PayPal USD (PYUSD) has surged by 300%, primarily driven by growth on the Solana network. However, due to the declines in the supply of BUSD and USDP by 17% and 42%, the overall supply of stablecoins has only increased by 2%. Arndxt expects that as treasury yields decline, investors may allocate more funds to risk assets, including cryptocurrencies, further driving the increase in stablecoin supply. He believes that if this trend continues or accelerates, the total supply of stablecoins could surpass its all-time high in the coming months, which may indicate that Bitcoin and the entire crypto market will rise accordingly.