CryptoQuant: Stablecoin Growth Fuels Prediction of Next Big Crypto Bull Run

The cryptocurrency market could be on the verge of another major rally, driven by a significant expansion in the circulating supply of stablecoins, according to a new report from CryptoQuant. The report highlights a surge in stablecoin liquidity, a key indicator often associated with sustained gains in the crypto market.

A $37 Billion Surge: Stablecoins Flood the Market

Since the recent U.S. Presidential election, the total market capitalization of stablecoins has soared to a record high of $204 billion, marking a $37 billion increase since November 4, 2024. CryptoQuant analysts emphasize the importance of this trend, stating that "Historically, growing liquidity via stablecoins is associated with sustained gains in crypto markets."

Tether Leads the Charge, but Circle Gains Ground

Tether's USDT has been the primary driver of this growth, with deposits on centralized exchanges rising 41% from $30.5 billion on November 4, 2024, to $43 billion today. However, Circle's USDC has also seen renewed momentum.

Beyond Trading: Stablecoins Surpass Visa and Mastercard in Volume

Adding to the stablecoin narrative, a separate report from CEX.io revealed that stablecoin transfer volume in 2024 has already surpassed the combined transaction volume of Visa and Mastercard by over 7.68%, reaching a staggering $27.6 trillion. Interestingly, the report found that 70% of this volume was driven by bot activity, with Solana and Base networks seeing bot transactions account for an astonishing 98% of their volume.

Yield-Bearing Stablecoins: A Growing Trend

The CEX.io report also highlighted the growing popularity of yield-bearing stablecoins, which now represent over 3% of the total stablecoin market. This trend has contributed to a 414% surge in the market capitalization of tokenized treasuries.