CryptoQuant founder and CEO Ki Young Ju has stated that while the supply of stablecoins is growing, it’s not enough to create significant buyer liquidity and push the high BTC price. Currently, exchanges hold approximately six times the amount of BTC as stablecoins, with the value of stablecoin reserves in September 2021 being $30 billion.
However, only 21% of stablecoins are on exchanges for trading purposes, far lower than the 50% in 2021. The supply of stablecoins is being used for purposes other than trading within the current market cycle, with more than 50% of remittances to certain countries in 2022-2023 being stablecoins used to store value.
