@solomonforster

Stablecoin supply and balance shifts are closely intertwined with risk appetite: rapid minting can signal readiness for deployment into risk assets, while net redemptions often accompany de-risking and withdrawals. Rising stablecoin issuance generally precedes or accompanies inflows into spot and derivatives markets, whereas contraction tends to coincide with sell-offs or liquidity flight. Correlation strength depends on which stablecoins dominate ecosystem rails and whether minting is backed by on-exchange demand or off-exchange entities. Monitoring exchange stablecoin balances, net issuance rates, and concentration of newly minted supply provides a more actionable read on whether stablecoin movements are fueling rallies or merely reflecting internal liquidity mechanics.

0 reply

0 recast

0 reaction