# Stablecoin Supply

## What is Stablecoin Supply?

Stablecoin Supply refers to the circulating market capitalization of stablecoins such as USDT and USDC.

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## How to Use Stablecoin Supply

#### By comparing the market capitalization of the largest stablecoin, USDT, with the price of BTC:

• In 2022, as the market declined, USDT’s market cap also decreased → indicating funds flowing out of the market and a continuous reduction in market liquidity.

• Conversely, as the market began to recover in 2023-2024, USDT’s market cap increased → signaling funds flowing into the market and a steady increase in market liquidity.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXepJcCldLtoXiLwYqWpgsHegk4GW8g8aOKrtbLG33-nECvw7hOmtAr7rvxaWte5eQgfGvj6F24u2QGWIsTRexG5rSoiPHudrcm0L7tEIZ3EB7n-6dLzQB7ccXa644mIuaiP9waysQ?key=luLiz2GY4XjFT_nYY-mTIQJp" alt=""><figcaption></figcaption></figure>

#### Key Observation: USDC’s Counter-Trend Issuance

Analysis reveals that when USDC experiences counter-trend issuance, diverging from price movements, it may signal a market bottom. For example:

• When Overall LIQ shows green bars combined with a USDC issuance exceeding $1 billion, this often forms a short-term range bottom in the market.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcsbvGJaYjL1JXDvyGe3A_GlDis_J6rI5p3FzDDx8DnHHRaSG0kEQT6sodHXPb6P0gniZtYqSDWkadxBMw9F37H1OBggdhaB3m5qnTu6awt2LicaszU67YKN-AYci-f6njXwvj9hA?key=luLiz2GY4XjFT_nYY-mTIQJp" alt=""><figcaption></figcaption></figure>

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#### **Disclaimer**

Thank you for using CoinKarma. The data provided is based on historical performance and cannot guarantee future market trends. The cryptocurrency market is highly volatile. Users must assess risks and bear responsibility for their decisions.
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