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- CryptoQuant suggests rising stablecoin supply signals potential buying pressure for future market growth.
- Despite increased stablecoin supply, experts caution it’s too early to confirm the start of an upward cycle.
- The current correction phase shows rising stablecoin supply, signaling potential market surge when triggers appear.
Analytical platform CryptoQuant analyzed the relationship between supply and pressure in the market and stablecoins. In analysis, the measure of “potential buying pressure” can be more easily observed through market metrics, where stablecoins can be viewed as a portion of the stablecoin supply in particular cryptocurrency markets. This observation draws into focus, that stable coins will be key determinants to the upward movement of the market as it enters correction phase.
Stablecoin Supply Trends Upward
Between March and October of 2024, the supply of stablecoins has slightly decreased during the correction period. Reduction of the supply played a major role in the prolongation of the correction phase, which leads to the further decline of the market. However, in the current correction phase, each of these factors seem to be rather different. The phenomenal trend of stablecoins has been going up and this might signify that there is likely to be an accumulation of buying pressure.
This change in stablecoin supply stabilization implies that, once a set of strong triggers is establish, the market may be getting ready for a sharp upward movement. The cumulated amounts of Stable coins suggests the investors may bring their funds to the market whenever the right conditions emerge. However, CryptoQuant highlighted the need for patience in investment markets by saying the following concerning the trend spotted in bitcoin prices.
However, platform reveals that that despite the increase in stablecoin supply, it is still too early to state that a new upward cycle has started. The market is in the process of correcting and experts advise that there is need for patience in order to identify clear trends in the market before one can start investing. Therefore, according to CryptoQuant, investors should remain cautious because the market conditions remain unpredictable.
The increase in stablecoin supply can be regarded as a preliminary signal of buying pressure which could lead to steep growth as soon as the triggers are set. Investors are once again encouraged to be very patient and wait for further signals in order to invest in the current market.
