Bitcoin (BTC) has retained a key bull signal despite the recent crypto market drawdown, according to new research.
New research indicates that stablecoin supply trends remain positive for crypto market growth. The ERC-20 stablecoin supply alone has reached $185 billion. Additionally, data suggests Binance users are storing stablecoin "dry powder" in preparation for market entries.
Research Highlights Stablecoin Importance Over M2 Supply
Data from the on-chain analytics platform CryptoQuant confirms that the supply of stablecoins continues to hover around all-time highs as of November 2025. This internal crypto liquidity suggests potential for fresh growth, even in the face of recent short-term setbacks.
The total stablecoin supply on the Ethereum network (ERC-20) alone has reached a new all-time high of $185 billion and has maintained this level throughout the current month. XWIN Research Japan, a contributor to CryptoQuant's "Quicktake" blog posts, commented that this growth is more consistent than Bitcoin's price movements and directly reflects capital entering the crypto ecosystem.
Previously, Cointelegraph reported on the historical link between crypto price performance and changes in the global M2 money supply. After the M2 measure itself hit record highs earlier in 2025, its growth has since cooled, leading to a more uncertain period for risk assets.
However, XWIN argues that stablecoins serve as a more crucial indicator for the industry's performance. The platform outlined three key reasons for this: stablecoins are the primary liquidity source for trading, DEXs, lending, and derivatives; they adjust quickly, capturing investor flows faster than slower M2 data; and they track institutional and ETF-related inflows into the crypto space.
In both the 2021 bull market and the 2024–2025 recovery, rising stablecoin supply clearly preceded Bitcoin’s upside.
Focus on Stablecoin "Dry Powder"
This trend is also evident in the liquidity shifts observed on Binance, the world's largest cryptocurrency exchange. CryptoQuant recently noted that the "skyrocketing" Binance stablecoin reserves stand in stark contrast to the declining reserves of both Bitcoin and Ether (ETH).
Contributor CryptoOnChain wrote that this combination of declining coin supply and soaring stablecoin reserves suggests traders have been taking profits at price peaks and are now holding significant "dry powder" on the sidelines. The observation was made in the context of a potential sell-off or an accumulation of buying opportunities.
This volume of stablecoins parked on the exchange acts like a compressed spring; upon a price correction or macroeconomic stabilization, it could provide the fuel for a new explosive move. The market is currently in a phase of armed patience.
