Stablecoin liquidity has reached a record high of $220 billion, according to CryptoQuant’s latest report, signaling growing investor confidence and capital inflows into the crypto market.
The surge is largely driven by Tether (USDT) and USD Coin (USDC), which added a combined $3.7 billion in market cap over the past week, the strongest growth since February.
Over the last 30 days, USDT grew by $5.3 billion and USDC by $6 billion, both trending above their 30-day moving averages — a historically bullish signal for digital assets.
The influx of stablecoin liquidity is also reflected in the Bitcoin Bull Score Index, which jumped from 20 to 50, moving sentiment from bearish to neutral. Meanwhile, Bitcoin has rallied more than 25%, rebounding from $74,000 in early April to over $96,500 in May.
Analyst Robert Breedlove highlighted the average Bitcoin miner production cost as a potential market floor, often marking the start of new bull runs. Despite the record liquidity, exchange balances are mixed. USDT exchange holdings remain below February highs at $38 billion, while USDC exchange balances have risen to $6.5 billion, their highest since March 2023.
As stablecoin reserves on exchanges grow, analysts suggest this liquidity could drive further gains, especially if Bitcoin breaks through key resistance levels with sustained momentum.
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