Bitcoin (BTC) has retained a key bull signal despite the crypto market drawdown, new research says.
Key points:
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Stablecoin supply trends stay positive for crypto market growth, new research shows.
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The ERC-20 stablecoin supply alone is at $185 billion.
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Binance users are storing stablecoin “dry powder” for market entries.
Research: Stablecoins matter more than M2 supply
Data from onchain analytics platform CryptoQuant confirms that the supply of stablecoins continues to circle all-time highs in November 2025.
Crypto internal liquidity points the way to fresh growth despite recent short-term setbacks, CryptoQuant shows.
In 2025, the total stablecoin supply on Ethereum network (ERC-20) alone has reached $185 billion — a new all-time high — and continues to hover at that level this month.
“This growth is more consistent than Bitcoin’s price and directly reflects capital entering the crypto ecosystem,” contributor XWIN Research Japan commented 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 that liquidity measure hit record highs of its own earlier in 2025, its growth has since cooled, ushering in a more uncertain period for risk assets.
XWIN, however, argues that stablecoins are more important as a yardstick for industry performance.
“Stablecoin supply matters because: 1 It is the primary liquidity source for trading, DEXs, lending, and derivatives. 2.It adjusts quickly, capturing investor flows faster than monthly/quarterly M2 data. 3. It tracks institutional and ETF-related inflows into crypto,” it explained.
“In both the 2021 bull market and the 2024–2025 recovery, rising stablecoin supply clearly preceded Bitcoin’s upside.”
Stablecoin “dry powder” in focus
The trend is reflected in liquidity shifts on the largest global crypto exchange, Binance.
Related: Bitcoin sees ‘significant step forward’ as $97K BTC price targets return
As CryptoQuant noted earlier this week, the “skyrocketing” Binance stablecoin reserves stand in stark contrast to the declining reserves of both Bitcoin and Ether (ETH).
“This rare combination (declining coin supply + skyrocketing stablecoin reserves) suggests that traders have been taking profits at price peaks 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; upon a price correction or macroeconomic stabilization, it could provide the fuel for a new explosive move. 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 when making a decision.