Declining Treasury Yields Promote Increase in Stablecoin Supply, Potentially Driving BTC's Next Rally
Publication Time:2024-08-26 11:02:10
According to Jinse Finance Report, crypto analyst arndxt has recently focused on the total supply of stablecoins as an important indicator in the crypto space. He found that since Bitcoin reached its all-time high in March, the supply of major stablecoins including Tether (USDT), USDCoin (USDC), and DAI has increased by 14%, 13%, and 12%, respectively. Among them, the supply of PayPal USD (PYUSD) saw a particularly significant increase of 300%, mainly occurring on the Solana network. Despite declines in supply for BUSD and USDP by 17% and 42%, respectively, the overall stablecoin supply still grew by 2%. Arndxt predicts that with declining treasury yields, investors may allocate more funds to risk assets like cryptocurrencies, leading to further increases in stablecoin supply. If this trend continues or accelerates, it is expected that the total stablecoin supply could reach new highs in the coming months, which might indicate an upward trend in Bitcoin and the broader crypto market.
Treasury Yields
Bitcoin Rally
Stablecoin Supply