TechFlow reports that crypto analyst arndxt recently shared his view that the most critical metric in the current cryptocurrency market is the total stablecoin supply, which is now showing some positive signals.
Since March, when Bitcoin reached a new all-time high, the supplies of Tether (USDT), USD Coin (USDC), and DAI have increased by 14%, 13%, and 12% respectively, while PayPal USD (PYUSD) surged 300%, primarily on the Solana network.
However, due to a 17% decline in BUSD and a 42% drop in USDP, overall stablecoin supply only grew by 2%.
arndxt expects that as Treasury yields decline, investors may allocate more capital to risk assets including cryptocurrencies, further driving up stablecoin supply.
He believes that if this trend continues or accelerates, the total stablecoin supply could break its all-time high in the coming months, potentially signaling a rise in Bitcoin and the broader crypto market.
