A $300Bn cash cushion just formed in crypto, and traders are asking when that “dry powder” will rotate into altcoins.
The value of dollar-pegged tokens in circulation has topped $300Bn for the first time, marking a milestone that often boosts liquidity across digital assets.
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What Does the Stablecoin Supply Ratio Reveal About Market Liquidity?
Data from DeFiLlama shows the total stablecoin market cap at about $301.6Bn today, a +2% gain over the past week.
The increase is observed with Bitcoin trading as high as two months at around $120,000-123,000, which provides a favorable risk appetite atmosphere in October.
Tether (USDT) is the leader of the issuers, and its market cap is almost $176Bn.
(Source: Coingecko)
USD Coin (USDC) ranks next with an approximate value of $74-$75Bn, and synthetic stablecoin USDe is close to the value of $14.8Bn. These three tokens made up most of the net issuance of 2025.
This year’s growth marks the fastest stablecoin expansion since early 2021. Even so, analysts say the market must accelerate further to meet long-term forecasts.
Coinbase projects $1.2 trillion in supply by 2028, while Standard Chartered sees $2 trillion and Citi as much as $4 trillion by 2030.
(Source: Coinbase)
At the current pace of about $10Bn added each month, it would take more than five years to reach the lower end of those estimates.
Circle’s push toward the public market and reports of a large Tether funding round are seen as key drivers that could expand the sector’s role in global liquidity.
A key metric to watch is the Stablecoin Supply Ratio (SSR). It compares the supply of Bitcoin to that of stablecoins, measured in BTC terms. A lower SSR means there’s more stablecoin liquidity, often described as “dry powder” ready to flow into crypto.
According to Glassnode data, a simple public proxy using Bitcoin’s market cap divided by the total stablecoin market cap sits around 8.1.
That’s roughly $2.45 trillion in Bitcoin against $301.6Bn in stablecoins. Methodologies can differ, but this ratio gives a directional view. A lower or steady reading tends to show stronger buying power on the sidelines.
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How Are Stablecoins Acting as a Hedge Before the Fed Meeting?
The backdrop looks supportive. Stablecoin issuance has been expanding, with the market recently crossing a fresh round-number milestone.
At the same time, Bitcoin’s price near $120,000 keeps attention on the broader crypto market. If flows rotate beyond Bitcoin, mid-cap tokens are usually the first to benefit.
[SRC] https://finance.yahoo.com/news/stablecoins-hit-300bn-valuation-pump-051344379.html
