Market data shows that stablecoins growth will be fast in 2025, with total supply reaching $205 billion since January.
This price increase has caught the attention of traders and analysts.
Notably, with Bitcoin price fluctuating around $80,000, analysts wonder if this stablecoin surge could trigger massive BTC accumulation.
The Current Stablecoin Outlook
In a significant development, Blockchain data firm Glassnode reports that stablecoin supply has increased by $20.17 billion since January 1.
This update accounts for a 10.9% rally. This growth has excited the industry.
Stablecoins are making a strong comeback after their supply dropped from $187 billion in December 2024 to $185 billion in early January.
According to historical trends, when stablecoin supply experiences notable price growth, it often means that investors are preparing to enter the market.
This is important because traders widely use stablecoins like Tether (USDT) and USD Coin (USDC) to buy Bitcoin and other cryptocurrencies.
For traders, this current price growth is important because the more stablecoins are in circulation, the more potential for buying pressure.
Furthermore, one key measure analysts watch is the Stablecoin Supply Ratio (SSR).
This helps traders and market experts compare the stablecoin amount available to Bitcoin’s market value.
When the ratio is low, it means there is a large pool of money ready to flow into Bitcoin.
Interestingly, recent market data shows that the SSR is now at a level seen in past Bitcoin rallies.
This has led to a renewed positive sentiment that Bitcoin demand could soon rise.
Glassnode Deepdive on Quarterly Boost
The stablecoin market is important. Glassnode reported a 30-day net position change of $3.33 billion, up 1.66%.
Inflows stabilized at levels last seen since September 2024, when the assets recorded a 1.2% uptick worth $2.37 billion.
In Q4 2024, stablecoins saw a 14.7% uptick to $23.86 billion. Thus far this quarter, the supply is up 10.9% to $20.17 billion.
Tether remains the dominant player, with a market cap of $143 billion, making up 61.5% of the stablecoin market.
USD Coin (USDC) follows with $58.4 billion. Both stablecoins have seen large increases in supply recently.
In the past week, Circle, the issuer of USDC, has minted $1.4 billion in new supply.
On March 13th, another 300 million USDC were created, following a $250 million mint an hour earlier.
Tether has also been actively adding supply, including a massive $1 billion mint on March 2.
This suggests that big investors and trading firms are boosting their reserves, possibly preparing for Bitcoin entry.
If they decide to use these funds to buy Bitcoin, it could create strong upward pressure on its price.
Could This Growth Push Bitcoin Higher?
Since the start of 2025, Bitcoin has fluctuated between $80,000 and $90,000, a level at which traders are watching for signs of the next big move.
The rise in stablecoin supply suggests that more money is waiting on the sidelines.
If deployed, it could push Bitcoin higher if confidence in the market grows.
However, external factors like interest rates, economic conditions, and government policies, especially Trump’s tariffs on countries, still play a role in its price increase or downgrade.
While stablecoin growth is a good sign, it does not guarantee an immediate Bitcoin surge.
Investors will be watching closely to see if this liquidity is used in the coming weeks.
The post Stablecoin Supply Hits 205 Billion YTD, Bitcoin Rally Near? appeared first on The Coin Republic.
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