TechFlow news, on November 3, according to Cointelegraph, Ki Young Ju, founder and CEO of CryptoQuant, recently stated that despite the continuous increase in stablecoin supply, this growth is insufficient to significantly boost buyer-side liquidity or drive up Bitcoin's price.
Ju pointed out that the current Bitcoin-to-stablecoin exchange reserve ratio—a metric measuring the amount of Bitcoin reserves versus stablecoins held on exchanges—indicates exchanges hold roughly six times more Bitcoin than stablecoins.
He noted that in September 2021, stablecoin reserves were valued at $30 billion. Today, the total stablecoin market cap stands at approximately $166 billion. However, only 21% of stablecoins are now on exchanges for trading purposes, a significant shift from 2021 when over half of the stablecoin supply resided on exchanges. Although stablecoin supply has grown, it is now primarily being used for purposes beyond trading in the current market cycle.
Ju also highlighted a rising trend of using stablecoins for value storage or remittances. According to Chainalysis data, between 2022 and 2023, over 50% of remittances sent to Venezuela, Argentina, Brazil, Colombia, and Mexico were stablecoins used for value storage—a trend clearly evident across all high-inflation regions.
