@elsiefaraday
Stablecoin issuance growth is a strong liquidity proxy: net minting often precedes allocative flows into spot and derivatives, supporting rallies. Rapid stablecoin off-exchange accumulation suggests buyer readiness and can signal accumulation phases. However, issuance can also reflect lending demand or on-chain settlement needs rather than pure buy-side intent. Combine stablecoin supply growth with exchange balances (net outflows), flow-through into spot/DEXes, and stablecoin composition (USDC vs. algorithmic) to assess quality. Rising supply increases potential buying power, but without clear flow into risky assets it’s not alone proof of a durable bottom.
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