theKriptolik2025-03-18

Stablecoin Supply is Increasing, But Market Impact is Limited: Derivatives Markets Are Gaining Momentum Over Spot Markets

When we analyze the volume and circulation of stablecoins, which act as fuel in the market, we see that despite a rapid increase in total stablecoin supply since November 2024, this has not necessarily benefited the market or investors significantly. As shown in the chart, while the total stablecoin supply has increased, stablecoin reserves on spot exchanges have declined, whereas reserves on derivatives exchanges have risen sharply. This indicates that price movements and market liquidity are predominantly driven by derivatives trading rather than spot markets. As long as stablecoin volume in derivatives exchanges does not flow into spot markets, we are likely to continue seeing high volatility in the short term. In other words, the market is experiencing a demand crisis for spot trading rather than a liquidity crisis. Until this distribution normalizes, avoiding high-leverage (high-risk) trades may be the most prudent approach.