Stablecoins being converted into Bitcoin approach a four-year high

exchange68September 13, 2024

0 1 1 minute read

Definition

The Stablecoin Supply Ratio (SSR) is the ratio between Bitcoin supply and the supply of stablecoins denoted in BTC, or: Bitcoin Market cap / Stablecoin Market cap.

We use the following stablecoins for the supply: USDT, TUSD, USDC, USDP, GUSD, DAI, SAI, and BUSD.

When the SSR is low, the current stablecoin supply has more “buying power” to purchase BTC.

Quick Take

CryptoSlate reported that less than $30 billion of stablecoins now sit on exchanges — a drawdown of $15 billion in the past four months.
The SSR confirms that stablecoins are moving into Bitcoin and are approaching four-year highs — showing a severe change rate.
I also tweeted about this on March 17, showing the outflows from stablecoins entering into Bitcoin.
This tells us in the crypto ecosystem, Bitcoin is the most risk-off asset out there — which is also why alt coins are performing poorly against Bitcoin.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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