Bitcoin 
BTCUSD has retained a key bullish signal despite the crypto market downturn, according to a new study.
Key points:
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Stablecoin supply trends remain positive for crypto market growth, according to a new study.
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The supply of ERC-20 stablecoins alone stands at $185 billion.
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Binance users store stablecoin “dry powder” for market entries.
Research: Stablecoins matter more than the supply of M2
Data from on-chain analytics platform CryptoQuant confirms that stablecoin supply continues to reach all-time highs in November.
Crypto’s internal liquidity is paving the way for further growth despite recent short-term setbacks, CryptoQuant shows.
By 2025, the total supply of stablecoins on the Ethereum network (ERC-20) alone reached $185 billion – a new all-time high – and continues to hover at that level this month.
“This growth is more consistent than the price of Bitcoin and directly reflects the inflow of capital into the crypto ecosystem,” commented contributor XWIN Research Japan in one of CryptoQuant’s Quicktake blog posts.
As Cointelegraph reported, crypto price performance has regularly been linked to changes in the global M2 money supply.
After this measure of liquidity reached record levels in early 2025, its growth has since slowed, setting the stage for a more uncertain period for risky assets.
XWIN, however, argues that stablecoins are more important as a benchmark for industry performance.
“Stablecoin’s offering is important because: 1. It is the primary source of liquidity for trading, DEXs, lending and derivatives. 2. It scales quickly, capturing investor flows faster than monthly/quarterly M2 data. 3. It tracks institutional and ETF-related flows in crypto,” he said, adding:
“Both during the 2021 bull market and the 2024 to 2025 recovery, the increase in stablecoin supply clearly preceded the rise of Bitcoin. »
Focus on Stablecoin “dry powder”
This trend is reflected in liquidity changes on the world’s largest crypto exchange, Binance.
As CryptoQuant noted earlier this week, Binance stablecoin’s “skyrocketing” reserves stand in stark contrast to the declining reserves of Bitcoin and Ether. 
ETHUSD.
“This rare combination (decreasing coin supply + skyrocketing stablecoin reserves) suggests that traders took profits when prices spiked and are now sitting on the sidelines with massive ‘dry powder,’” contributor CryptoOnChain wrote at the time.
“This volume of stablecoins parked on the exchange acts like a compressed spring; in the event of a price correction or macroeconomic stabilization, it could fuel a new explosive movement. The market is currently in a phase of armed patience.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
