ERC20 Stablecoin Supply Reaches Record High, Influencing Bitcoin Trends

According to ChainCatcher, a recent report by CryptoQuant reveals that the total supply of ERC20 stablecoins surpassed $160 billion in 2025, marking a historic peak. This milestone is considered a crucial indicator for predicting Bitcoin's price movements. The study highlights that the correlation between stablecoin supply and Bitcoin price trends is more pronounced than with the global M2 money supply. The report suggests that stablecoins, as a primary source of liquidity in the crypto market, can more swiftly and directly reflect the flow of investor funds. The growth in stablecoin supply often precedes Bitcoin price increases, as observed during the 2021 bull market and the market recovery in 2024-2025. The CryptoQuant research team notes that the current high level of stablecoin supply indicates a sustained increase in underlying market purchasing power, which could be a significant driver for Bitcoin's next price trend.