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The crypto market has been struggling to gain momentum in recent weeks, with Bitcoin and major altcoins falling to new lows this cycle. Price action has been far from encouraging, leaving many traders questioning whether the market has already reached its peak. However, a closer look at stablecoin data tells a different story that suggests the bull cycle is far from over.

Stablecoin Supply Trends And Market Cycles

On-chain data shows an interesting correlation between the stablecoin market and the bull and bear cycles of Bitcoin and other cryptocurrencies. This pattern, identified by on-chain analytics platform IntoTheBlock, suggests that stablecoin supply has historically peaked alongside major market tops. The relationship implies that a surge in stablecoin supply often signals the final stages of a bull run, with declines in supply typically coinciding with the onset of bearish conditions.

A look at previous market cycles reinforces this trend, particularly in the case of Bitcoin. In April 2022, the total stablecoin supply reached an all-time high of $187 billion. Soon after, supply began to decline, aligning perfectly with the start of the last bear market. This phase saw Bitcoin undergo a prolonged downturn, with prices steadily falling until they bottomed out in January 2023. The sharp decline in stablecoin supply throughout that period reflected a broader shift in investor sentiment as liquidity left the market.

At the time of writing, the stablecoin supply has continued to climb despite Bitcoin’s 24% price correction from its recent all-time high. The stablecoin supply has risen to $219 billion and continues to climb. This suggests that the market is still in a mid-cycle phase rather than approaching its peak.

Image From X: IntoTheBlock

Stablecoins Closing In On Ethereum’s Market Cap

Another notable observation regarding the stablecoin market is that despite the recent price stagnation in the broader crypto market, stablecoins still have significant liquidity. Notably, the total stablecoin supply is now just $10 billion away from Ethereum’s market capitalization. 

This phenomenon aligns with the recent price decline, which has seen many investors exiting their positions in Bitcoin and other cryptocurrencies and then converting them to USDT and other stablecoins. However, the fact that these funds remain in the crypto industry and are not out is positive.

Although a rising stablecoin supply reflects growing investor caution, it also means a large pool of capital is ready to be deployed once market conditions improve.

Image From X: IntoTheBlock

At the time of writing, Bitcoin is trading at $84,325, having spent most of the past 24 hours trading between $83,688 and $84,504. On the other hand, the crypto market saw a modest increase of 0.3% in the past 24 hours. It is currently at $2.75 trillion, down by 25.8% from its $3.72 trillion peak in December 2024. 

If the cycle were nearing its end, history suggests that the stablecoin supply would have already started declining. Instead, the rising trend points to continued market participation and potential for further upside.

Featured image from Midas, chart from TradingView

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As Solana marks its fifth anniversary, there is palpable optimism for prices to rally in the short term. Experts say Solana price a raft of on-chain data will affect Solana’s price including bridged assets and positive SMA and EMA indicators.

Solana Receives $315 Million Assets Bridged From Ethereum

Solana’s ecosystem is buzzing with optimism following a surge in the volume of bridged assets to the network. According to the latest data, Solana received $314 million worth of tokens from the Ethereum network in the last 30 days.

The metric is a record high for Solana with the volume dwarfing the total bridged assets to Ethereum’s layer 2 projects. According to on-chain data, the value received by Solana from Ethereum is 463% more than the volume transferred to ETH’s layer 2 platforms.

Pundits say the spike in bridged assets over the last 30 days is a bullish indicator for Solana’s price. Right out of the bat, the assets will increase the total value locked (TVL) and liquidity for SOL while increasing user activity.

Others are construing the metric as confirmation of Solana’s dominance over Ethereum, stirring anticipation of a potential flippening.

Solana Price Eyes $178 In The Short-Term

There is increased investor confidence that Solana price can clinch $178 in the short term. On-analysts say if SOL breaks through its 20-day exponential moving average (EMA), investors can expect the easing of current selling pressure.

The easing will fuel a push toward the 50-day simple moving average (SMA) that will see the price face bearish resistance at around $178. However, a price break below $120 could trigger a steeper correction toward $110 and a potential $90.

In the long term, a forming cup-and-handle pattern could send SOL to $3,800 if a break out occurs. Currently, Solana is trading at $129, down by nearly 4% over the last 24 hours.

The network is agog with a slew of activity as Solana marks its fifth anniversary. The failure of the SIMD-0228 proposal still offers a silver lining for Solana given the speed of voting processes.

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Aliyu Pokima

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.