According to a recent report by Cointelegraph, the CEO of CryptoQuant, Ki Young Ju, has highlighted the continuing expansion of the stablecoin market and its implications for Bitcoin (BTC) prices. Despite a significant increase in stablecoins, which now total approximately $166 billion, this growth has not translated into enhanced buy-side liquidity. The current exchange reserve ratio indicates that cryptocurrency exchanges maintain nearly six times the amount of BTC compared to stablecoins. Notably, the proportion of stablecoins actively utilized for trading has dramatically decreased from over 50% in 2021 to a mere 21% today. This shift suggests a growing preference for stablecoins as a store of value rather than for trading purposes. Analysis from Chainalysis reveals that stablecoins are increasingly serving as a remittance option, particularly in high-inflation countries such as Venezuela and Argentina, reflecting a strategic adaptation in their usage.
Source: https://en.coinotag.com/breakingnews/bitcoin-supply-surpasses-stablecoins-as-trading-usage-drops-insights-from-cryptoquant-ceo-ki-young-ju/