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

CryptoQuant founder and CEO Ki Young Ju recently stated that although the supply of stablecoins continues to grow, this increase is not enough to create significant buyer liquidity and push up BTC prices. Ju said that the current Bitcoin-to-stablecoin exchange reserve ratio (a measure of the exchange's Bitcoin reserves versus stablecoins) indicates that exchanges hold about six times as many BTCs as stablecoins. He noted that in September 2021, the value of stablecoin reserves was $30 billion. Currently, the total market value of all stablecoins is approximately $166 billion. However, only 21% of these are used for trading purposes on exchanges, a far cry from 2021 when over 50% of total stablecoin supply was located on exchanges. Although the supply of stablecoins continues to grow, they are mainly used for purposes other than trading within the current market cycle. Ju pointed out an increasing trend where stablecoins are being used as a store of value or means for remittance. According to data from Chainalysis, more than 50% of remittances sent to Venezuela, Argentina, Brazil, Colombia and Mexico between 2022-2023 were made using value-storing stable coins; this trend applies across all high-inflation regions.(Cointelegraph)