PANews reported on November 3rd that according to Cointelegraph, CryptoQuant founder and CEO Ki Young Ju said that although the supply of stablecoins continues to grow, this growth is not enough to create significant buy-side liquidity and push up BTC prices. The founder of CryptoQuant introduced the current exchange reserve ratio of Bitcoin to stablecoins (an indicator that measures the exchange's Bitcoin reserves to stablecoins), indicating that the number of BTC held by exchanges is about six times that of stablecoins. The value of stablecoin reserves in September 2021 was US$30 billion. Currently, the entire stablecoin market value is about US$166 billion. However, only 21% of stablecoins are traded on exchanges, a far cry from the situation in 2021, when more than 50% of the total stablecoin supply was held on exchanges.
CryptoQuant CEO said that while the supply of stablecoins continues to grow, stablecoins are mainly used for purposes other than trading in the current market cycle. Liquidity from digital asset exchange-traded funds and US dollar liquidity from Coinbase will play a "critical role" in supporting the market in the coming months.
