CryptoQuant Founder: Bitcoin Cannot Rise Just by Stablecoin Supply

2024-11-03 08:42:31

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ChainCatcher news, according to Cointelegraph, CryptoQuant founder and CEO Ki Young Ju recently explained that although the supply of stablecoins continues to grow, the new trading volume is insufficient to create enough buyer liquidity to drive up Bitcoin prices.

He pointed out that the current exchange reserve ratio of Bitcoin to stablecoins is about 6:1, which means that the amount of Bitcoin held on exchanges is six times that of stablecoins. In September 2021, the value of stablecoin reserves was approximately $30 billion.

Currently, the total market capitalization of stablecoins is about $166 billion, but only 21% of stablecoins are used for trading, far below the 50% in 2021. Ki Young Ju believes that although the supply of stablecoins continues to grow, in the current market cycle, stablecoins are primarily used for other purposes rather than trading.

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