On April 17, 2025, Glassnode reported a notable trend in the cryptocurrency market, indicating that the growth in the stablecoin supply, which had been positive, softened in recent weeks (Glassnode, April 17, 2025). This evolution is significant because stablecoins serve as a basic quote assets on various cryptographic markets. The slowdown in the growth in the supply of stablescoin is a clear indicator of a broader contraction in the liquidity of digital assets and a change to a more risk environment on the market. More specifically, the total market capitalization of the stalls, which amounted to 132.5 billion dollars on April 1, 2025, decreased $ 130.2 billion by April 15, 2025, reflecting a decrease of 1.74% over two weeks (Coinmarketcap, April 15, 2025). This contraction in the Stablecoin offer is particularly obvious in the main stablescoins such as Tether (USDT) and USD Coin (USDC), the offer of the USDT offer from $ 98.3 billion to $ 97.1 billion in the same period (Coingecko, April 15, $ 2025). The commercial volume of the USDT against BTC on the main scholarships as Binance also experienced a drop of $ 2.3 billion on April 1, 2025 to 2.1 billion dollars on April 15, 2025, indicating a reduced market activity (Binance, April 15, 2025). This trend is also corroborated by metrics on chain, the number of active addresses interacting with the floors of 5% of 1.2 million to 1.14 million between April 1 and April 15, 2025 (cryptocurrency, April 15, 2025).
The implications of this slowdown in the growth of the stablecoin offer are multifaceted and have direct consequences for trading strategies. As Stablecoins are often used as a gateway to enter and out of the positions of cryptocurrencies, reduced diet can cause increased volatility in other cryptocurrencies. For example, Bitcoin (BTC) experienced a price drop of $ 65,000 on April 1, 2025 to $ 63,500 on April 15, 2025, a drop of 2.31%, which can be partially attributed to the reduced liquidity provided by the floors (Coinbase, April 15, 2025). Ethereum (ETH) also experienced a similar trend, its price from $ 3,200 to $ 3,100 over the same period, a decrease of 3.13% (Kraken, April 15, 2025). Trading volumes for BTC / USDT and ETH / USDT pairs on the main exchanges like Coinbase and Kraken decreased by 10% and 8%, from April 1 to April 15, 2025, further emphasizing the impact of the liquidity of the reduced stable (Coinbase, Kraken, April 15, 2025). Traders should consider adjusting their positions to take into account this increase in potential volatility and liquidity constraints, possibly reducing the lever effect or diversifying as less correlated with stabbing movements.
Technical indicators and volume data provide additional information on current market dynamics. The relative resistance index (RSI) for BTC / USDT on April 15, 2025, was at 45, indicating a neutral market condition, while the divergence of average mobile convergence (MacD) has shown a lower crossroads, suggesting a potential decline (tradingView, April 15, 2025). For ETH / USDT, the RSI was 42 years old, also indicating a neutral market, but the MacD showed a similar bearish crossing (TradingView, April 15, 2025). The volume of trading for BTC / USDT on Binance was 35,000 BTC on April 1, 2025, which decreased to 31,500 BTC before April 15, 2025, a reduction of 10% (Binance, April 15, 2025). Similarly, the commercial volume for ETH / USDT on Binance went from 220,000 ETH to 202,400 ETH over the same period, a drop of 8% (Binance, April 15, 2025). These volume decreases are aligned with the overall trend of reducing liquidity on the market. Chain metrics such as network value / transaction ratio (NVT) for BTC increased from 65 on April 1, 2025 to 68 on April 15, 2025, suggesting that the market could be overvalued compared to its volume of transactions (Glassnode, April 15, 2025). For ETH, the NVT report went from 35 to 37 over the same period, indicating a similar trend (Glassnode, April 15, 2025). Traders should monitor these indicators closely to make informed decisions in this evolving market environment.
Frequently asked questions:
What is the current trend in the growth of Stablecoin’s offer? The current trend in stable supply growth, as indicated on April 17, 2025, by Glassnode, shows softening in recent weeks, indicating a broader contraction in the liquidity of digital assets and a more risk environment on the market.
How did the reduction in stablecoin supply affect other cryptocurrencies? The reduction in the stablecoin supply led to an increase in volatility in other cryptocurrencies such as Bitcoin and Ethereum, their prices lowering by 2.31% and 3.13%, respectively, from April 1 to April 15, 2025, as Coinbase and Kraken reported.
What technical indicators should merchants look in this market environment? Traders must monitor RSI and MacD for BTC / USDT and ETH / USDT pairs, because the two showed neutral RSI values and MacD Bearish crossings on April 15, 2025, according to TradingView. In addition, the NVT report for the BTC and the ETH has increased, suggesting a potential overvaluation compared to the volume of transactions, as reported by Glassnode on April 15, 2025.
