CryptoQuant CEO: Stablecoins are mainly used for non-transaction purposes in the current cycle, and their supply growth is not enough to boost BTC

Odaily News Ki Young Ju, founder and CEO of CryptoQuant, recently said that while the supply of stablecoins continues to grow, this increase is not enough to create significant buy-side liquidity and push up BTC prices. Ju said that the current Bitcoin to stablecoin exchange reserve ratio (a measure of exchanges' Bitcoin reserves to stablecoins) shows that exchanges hold about six times as much BTC as stablecoins. He said that the value of stablecoin reserves was $30 billion in September 2021. Currently, the entire stablecoin market cap is about $166 billion. However, only 21% of stablecoins are used for trading purposes on exchanges, a far cry from the situation in 2021, when more than 50% of the total stablecoin supply was on exchanges. While the supply of stablecoins continues to grow, it is mainly used for purposes other than trading in the current market cycle. Ju pointed out that there is a growing trend of stablecoins being used as a store of value or a method of remittance. According to Chainalysis, more than 50% of total remittances to Venezuela, Argentina, Brazil, Colombia, and Mexico in 2022-2023 were in stablecoins used to store value, a trend that applies to all regions with high inflation. (Cointelegraph)