Bull Run Crypto In Sight? Stablecoins Are Sending A Strong Signal To The Market

The volume of stablecoins is skyrocketing, and this is not a trivial detail for crypto analysts. Such a surge raises intrigue and questions: are we witnessing a mere temporary craze or the signal of a new massive influx of investments? According to IntoTheBlock, the supply of stablecoins has exceeded 219 billion dollars, suggesting that the bull cycle is still far from its peak.

An explosion of stablecoins signaling a turning point for the market

Stablecoins are no longer just simple exchange tokens. They have become strategic tools in the service of major economic maneuvers. The rapid increase in their capitalization, particularly on Ethereum and Solana, sends clear signals to investors: the demand is indeed there, and it is not fading.

Some notable figures:

• +130% since January: explosion of the supply of stablecoins on Solana thanks to Trump ;
• 219 billion dollars: current supply across the entire market;
• 187 billion dollars in April 2022: historic peak before the bear market;
• 98%: probability that the Fed will keep rates stable according to CME Group;
• 6,000 dollars: price forecast for ETH by VanEck in 2025.

The United States has understood this well: they are now counting on these digital assets to strengthen the hegemony of the dollar . The support of American elected officials for these digital currencies is not insignificant.

As MartyParty states:

” Stablecoins are being issued at a record pace in preparation for the adoption of the GENIUS Act. ”

So, should we see this explosion as a springboard towards massive adoption or merely a political maneuver?

Investors between expectation and opportunities

Despite the rise of stablecoins, the crypto market seems hesitant. The price of bitcoin hovers below key levels, ether struggles to maintain the 1,900 dollars, and traders are awaiting clear signals. The approach of the FOMC meeting adds to the uncertainty.

According to Stella Zlatareva (Nexo) :

” The market is adopting a cautious tone, following the trajectory of the S&P 500. Everything will depend on the upcoming economic data. ”

This caution does not signal a lack of opportunities. Historically, an increase in the flow of stablecoins to exchanges often precedes a massive influx of purchases.

Bridget Harris asserts:

” The demand for yield will propel the supply of stablecoins much higher. Once users are accustomed to constant gains, it is difficult to go back. “

At the same time, the role of stablecoins in traditional finance is becoming clearer. Their adoption by fintechs as a preferred payment method could accelerate their integration into the global economy. But this evolution relies on a fragile balance between innovation and regulation.

Supply of stablecoins: The 10 most important chains and the changes that have occurred since the beginning of the year – Source: Crypto Rank

Should we see it as the beginning of a new bull cycle or merely a temporary illusion?

At the beginning of February, the capitalization of stablecoins exceeded a historic record of over 200 billion dollars. A sign that crypto investors are looking to limit their risk? Alphractal experts point out that this caution could be the prelude to a new turning point for the market. The answer will come with time.