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$130 billion Ethereum stablecoin liquidity explosion! Is the final piece of the alts season in place?
The supply of stablecoins is rapidly increasing, and the total amount of stablecoins on the Ethereum (ETH) network has reached a historic high of $130 billion. With the improving regulatory environment in the United States and an influx of capital liquidity, the market is beginning to speculate: could this be the key catalyst to ignite the next bull run for alts?
US Regulatory Easing, Stablecoin Market Enters Golden Era
Recently, the U.S. Congress passed the GENIUS Act and the STABLE Act, establishing a clearer regulatory framework for the stablecoin market, ensuring transparency and consumer protection.
This policy is favorable and is resonating with the continuous growth of market supply, injecting new confidence into the crypto market.
Total supply of Ethereum stablecoins surges to $130 billion
According to Coinvo data, the supply of stablecoins on the ETH network has been rising steadily since the low point in August 2023, recently breaking historical highs and consolidating Ethereum's absolute dominance in the stablecoin issuance sector.
This surge in liquidity indicates that the market is building up firepower for higher-risk assets (such as altcoins). When stablecoins flow into exchanges and are paired with alts, it often triggers a round of capital rotation.
Multi-Chain Resonance: USDT, USDC, PYUSD Comprehensive Growth
USDT: The supply has resumed growth, primarily flowing out of exchanges through the TRON (TRX) network, indicating that funds are entering the OTC market or being held long-term.
USDC: The monthly transfer volume on the Aptos (APT) blockchain reached a record high of $8.6 billion, with a total of 23.2 million transactions in a single month.
PYUSD (PayPal): The supply on Ethereum is approaching 1 billion USD, while it reaches 250 million USD on Solana. These data show that stablecoin liquidity is no longer concentrated on a single public chain, but is distributed across multiple chains, expanding the market reach of available funds.
U.S. Crypto Reserves and Liquidity Strategy
The United States currently holds $347 million in stablecoins and is actively building a crypto reserve that includes Bitcoin (BTC) and Ethereum (ETH).
The liquidity of these stablecoins can not only be used for market intervention but may also become an invisible leverage driving the altcoin market.
Technical signals of the altcoin season: stablecoins and BTC's dominance decline
Stablecoin dominance: currently around 4.22%, showing signs of weakness. If it breaks the neck line of the "head and shoulders" pattern, it may trigger a full rotation among alts.
BTC dominance: It has dropped from 62.5% to 59.56% in just two weeks (data source: Niels), indicating that funds are gradually flowing out of Bitcoin in search of higher return targets.
Due to the negative correlation between altcoins and stablecoins' dominance, when the proportion of stablecoins decreases and BTC dominance simultaneously declines, it often serves as a key signal for the start of the altcoin season.
Conclusion: Liquidity is the fuel for altcoins
The supply of Ethereum stablecoins at 130 billion USD, combined with favorable U.S. regulations and multi-chain liquidity, is injecting much-needed vitality into the market. If the dominance of stablecoins and BTC continues to decline, the next bull run in alts may not be far off. Investors should closely monitor the scale of stablecoin inflows to exchanges, changes in BTC dominance, and breakout trends of major alts.