According to CryptoQuant CEO Ki Yun Joo, an increase in the supply of stablecoins alone will not lead to a significant rise in Bitcoin’s price, as reported by Cointelegraph.

Joo noted that “stablecoins” today are primarily used for transfers and storing funds, especially in countries with unstable fiat currencies, rather than for active trading. Currently, only 21% of the total stablecoin supply is on exchanges for trading, compared to over 50% in 2021, reflecting current changes in market preferences.

However, CryptoQuant highlighted in October that the increase in stablecoin capitalization in August-September would have supported a bullish trend for Bitcoin and other cryptocurrencies. Analysts at the time referred to stablecoins as the “circulatory system” of the cryptocurrency market.

According to CoinMarketCap, as of writing, the total market capitalization of stablecoins is around $179 billion. The largest share is held by USDT ($120.5 billion), followed by USDC ($34.9 billion) and DAI ($5.4 billion).

In October, Ki Yun Joo also expressed an optimistic forecast that Bitcoin could become a global currency by 2030.