Stablecoin supply has been on a downward trajectory since the TerraUSD collapse in 2022. And despite the crypto market’s bullish week, stablecoins remain flat.

The stablecoin market cap stayed relatively steady at $124 billion during bitcoin’s sudden upswing, failing to break the sector’s levels from early September, according to DeFiLlama. 

Analysts say stablecoin supply is a lagging indicator, but the lack of a stablecoin resurgence could indicate that bitcoin’s bull run isn’t driving new liquidity into the crypto market.

Stablecoins are tokens pegged to a certain asset or value, like the US dollar. Importantly, stablecoins are popular as on and off-ramps for…

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