According to new on-chain data from blockchain analytics platform CryptoQuant, nearly half of the entire circulating supply of stablecoins has been sitting dormant on exchanges for well over a year. Investors are obviously behaving with extreme caution.
Dormant cash cushion
Since December 2024, the exchange supply ratio has remained confined within a range of 0.40 to 0.46.
About 40% to 46% of all circulating stablecoins have been parked on trading platforms.
Despite extreme volatility, the liquidity structure has remained virtually unchanged over the past 18 months.
Since late 2024, Bitcoin skyrocketed toward its current all-time high near the $125,000, plummeting back down toward the $60,000 level.
At the same time, the Exchange Supply Ratio has fluctuated by a mere 5 percentage points.
Bitcoin has felt like a roller coaster despite massive institutional inflows over the past year.
“Liquidity remains abundant, but highly selective," CryptoQuant noted. "As a result, modest changes in investor conviction, risk appetite, or capital deployment continue to generate disproportionate volatility across Bitcoin.”
Binance's dominance
Global trading giant Binance alone consistently holds between 25% and 30% of the entire global stablecoin supply.
The trading titan commands more than half of all exchange-held stablecoin reserves on earth.
The data might be showing some hints that the broader crypto market has already found its structural floor.
Analysts believe that much of the market's downside-liquidity risk has already been discounted by participants.
For long-term investors, the current market asymmetry heavily favors patient accumulation.
U.Today Editorial Team
Dan Burgin
