Folks, there’s a number that doesn’t look like much today, but the more I look at it, the more I think it’s the crypto market’s “water gauge”: the total stablecoin supply has fallen to $298.5 billion, its lowest level since August.
Since October 28, it’s dropped by $3.1 billion in just a few days. From the start of this year through October 28, it had only fallen by $2.1 billion. It peaked at $315.5 billion on May 17, and has now given back $17 billion. Last year, it grew by about $100 billion over the full year, a 49% increase. This year, the picture has changed completely.
It’s like checking your fuel gauge before setting off on a drive. The needle isn’t dropping quickly, but you know you need to think about where to refuel before deciding where to go for fun.
What I’m wrestling with is the contrast in the details: USDT is down $5.3 billion this year, and USDC is down $4 billion, while other smaller stablecoins have actually gained $7.2 billion, bringing the total back up. My take is that big money is pulling back while smaller amounts are moving elsewhere. That doesn’t mean the whole market is out of cash. The counterpoint is that Bitcoin is currently around $77,900, down only about 7% in October—so we’re not at the point where the market has run dry.
Have you recently swapped out of stablecoins for peace of mind, or are you holding them as dry powder for an opportunity? After swapping out, are you glad you avoided the drop, or do you regret selling halfway down?
The above is solely my personal opinion and does not constitute investment advice.
$USDT #Stablecoins
Since October 28, it’s dropped by $3.1 billion in just a few days. From the start of this year through October 28, it had only fallen by $2.1 billion. It peaked at $315.5 billion on May 17, and has now given back $17 billion. Last year, it grew by about $100 billion over the full year, a 49% increase. This year, the picture has changed completely.
It’s like checking your fuel gauge before setting off on a drive. The needle isn’t dropping quickly, but you know you need to think about where to refuel before deciding where to go for fun.
What I’m wrestling with is the contrast in the details: USDT is down $5.3 billion this year, and USDC is down $4 billion, while other smaller stablecoins have actually gained $7.2 billion, bringing the total back up. My take is that big money is pulling back while smaller amounts are moving elsewhere. That doesn’t mean the whole market is out of cash. The counterpoint is that Bitcoin is currently around $77,900, down only about 7% in October—so we’re not at the point where the market has run dry.
Have you recently swapped out of stablecoins for peace of mind, or are you holding them as dry powder for an opportunity? After swapping out, are you glad you avoided the drop, or do you regret selling halfway down?
The above is solely my personal opinion and does not constitute investment advice.
$USDT #Stablecoins