CryptoQuant Founder: Bitcoin's rise cannot be driven solely by stablecoin supply
According to Cointelegraph, CryptoQuant founder and CEO Ki Young Ju recently explained that although the supply of stablecoins continues to grow, the added trading volume is not enough to create sufficient buyer liquidity to drive up Bitcoin prices.
He pointed out that the current exchange reserve ratio of Bitcoin to stablecoins is about 6:1, which means that the amount of Bitcoin held on exchanges is six times that of stablecoins. In September 2021, the reserve value of stablecoins was approximately $30 billion.
Currently, the total market value of all stablecoins is around $166 billion, but only 21% of these are used for trading - far less than in 2021 when it was at 50%. Ki Young Ju believes that while the supply of stablecoins continues to increase during this market cycle, they are primarily being used for purposes other than trading.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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