Stablecoins Reach $300Bn Valuation: When Will It Boost Non-BTC crypto Markets
A cash reserve of $300Bn has just emerged in the crypto space, prompting traders to speculate on when this “dry powder” will shift towards altcoins.
The total value of dollar-pegged tokens has surpassed $300Bn for the first time, representing a significant milestone that typically enhances liquidity in digital assets.
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What Insights Does the Stablecoin Circulating supply Ratio Provide Regarding Trading market Market fluidity?
According to data from DeFiLlama, the total market capitalization of stablecoins is approximately $301.6Bn today, reflecting a +2% increase over the last week.
This rise coincides with BTC trading at a peak around $120,000-123,000, creating a more favorable risk appetite throughout October.
Leading the issuance charge, Tether (USDT) holds a crypto market cap close to $176Bn.
Following closely, USD Token (USDC) is valued at approximately $74-$75Bn, while synthetic stablecoin USDe is nearing a value of $14.8Bn. Collectively, these three tokens accounted for the majority of the net issuance in 2025.
This year’s expansion represents the quickest rise in stablecoins since early 2021. Nevertheless, experts suggest the trading market needs to escalate further to align with long-term projections.
Coinbase forecasts a supply of $1.2 trillion by 2028, while Standard Chartered estimates $2 trillion and Citi predicts as much as $4 trillion by 2030.
At the current rate of around $10Bn added monthly, it would take over five years to reach the conservative end of these projections.
Circle’s transition towards the public crypto market and announcement of a substantial Tether funding round are viewed as pivotal drivers that could amplify the sector’s contribution to global market fluidity.
An important indicator to monitor is the Stablecoin Circulating supply Ratio (SSR), which juxtaposes the circulating supply of Bitcoin against that of stablecoins, expressed in Bitcoin terms. A diminished SSR indicates increased stablecoin market fluidity, commonly referred to as “dry powder” poised for deployment into crypto.
Per Glassnode data, a straightforward public proxy using Bitcoin’s crypto market cap divided by the total capital market cap for stablecoins is around 8.1.
This translates to approximately $2.45 trillion in Bitcoin versus $301.6Bn in stablecoins. While methodologies may vary, this ratio offers a directional perspective. A reduced or stable reading generally suggests heightened purchasing power on the sidelines.
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How Are Stablecoins Functioning as a Protective Measure Ahead of the Fed Meeting?
The environment appears conducive. There has been an expansion in stablecoin issuance, and the market has recently achieved a new, round-number milestone.
Simultaneously, BTC hovering around $120,000 keeps the spotlight on the broader market. Typically, when flows extend beyond BTC, mid-cap tokens are the first to see gains.
Glassnode’s framework indicates that a consistently low SSR or a continued decrease in the proxy ratio suggests that stablecoins maintain considerable buying power for forthcoming trading market movements.
Recent FedWatch data reveals that the crypto market almost entirely anticipates the Federal Reserve will decrease rates during the meeting on October 29, 2025.
Current indicators suggest a 97.8% likelihood that rates will drop to the 375-400 basis point range, with only a 2.2% chance that the Fed will maintain rates at 400-425 bps.
Expectations have shifted dramatically from the previous month, when traders were nearly evenly divided.
Crypto analyst Ted linked this change to movements in stablecoin flows, noting that retail traders are increasingly making bullish bets while institutional investors appear to be reducing their positions.
Unpopular opinion: October rate cuts are already fully priced in.
Retail is piling in with extreme bullishness.
Institutions are quietly offloading.
You connect the dots.
I may be wrong, but I’m risk-managing with 70% in stablecoins. pic.twitter.com/E7dkhNDWH4
— Ted (@TedPillows) October 3, 2025
“October rate cuts are already fully priced in,” Ted remarked, adding that he has allocated 70% of his portfolio into stablecoins for effective risk management.
The Federal Reserve’s choice could significantly influence liquidity across markets and affect risk tolerance.
Currently, traders are regarding easing as a near guarantee, with stablecoins being utilized as a preferred hedge prior to the forthcoming policy news.
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