$166 Billion Stablecoin Market Indicates Bitcoin Bull Run Is Still Distant

An analysis by CryptoQuant founder Ki Young Ju suggests we are still far from a real Bitcoin bull phase.

Currently, Bitcoin’s trading price is fluctuating around the $68,000 level, with active speculation ahead of the U.S. presidential election.

The current trade price of #Bitcoin is $68,338 pic.twitter.com/olCnsvEmUn

— Bitcoinik (@Bitcoinikdotcom) November 3, 2024

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Recently, CryptoQuant founder and CEO Ki Young Ju shared his analysis, indirectly predicting a significant gap remains between the current phase and the bull market phase for Bitcoin.

Ju explained that, while stablecoins alone can’t provide sufficient buy-side liquidity for Bitcoin, the BTC-to-stablecoin ratio of 6.05 shows that there’s approximately six times as much BTC on exchanges as stablecoins.

According to Ju, this scenario differs greatly from the last bull phase when stablecoin reserves totaled $30 billion in September 2021. Currently, the entire stablecoin market capitalization is around $166 billion, but only 21% of these stablecoins are held on exchanges for trading.

For those interested in more details, here’s additional context:

– In September 2021, exchange stablecoin reserves exceeded $30 billion. From this point, I considered the stablecoin market to be sufficiently grown, making comparisons from this time valid.

– Today, the… pic.twitter.com/g1YTXUEsRK

— Ki Young Ju (@ki_young_ju) November 1, 2024

The CryptoQuant executive noted that stablecoin supply is likely to continue growing, as they are no longer limited to crypto trading. Over recent years, stablecoin usage has increased across various sectors, including payments and holding fiat-backed digital money.

Presently, 92% of total stablecoins are held on Ethereum and Tron blockchain networks, with 8% on BNB and Base networks.

92% stabelcoin supply limited to Ethereum & Tron blockchain pic.twitter.com/u97SNNOiaU

— Bitcoinik (@Bitcoinikdotcom) November 3, 2024

Stablecoin Adoption

A recent report from Chainalysis confirmed that over 50% of remittances sent to Venezuela, Argentina, Brazil, Colombia, and Mexico between 2022-2023 were in stablecoins, used primarily to store value.

A similar trend is evident in Turkey, where the lira has been consistently devaluing against the dollar.

Read also: 77% of WazirX Customers Say They Won’t Return On WazirX platform Even if Exchange Restores 55% of Lost Funds

$166 Billion Stablecoin Market Indicates Bitcoin Bull Run Is Still Distant

 

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