Definition
The Stablecoin Supply Ratio (SSR) is the ratio between Bitcoin supply and the supply of stablecoins denoted in BTC, or: Bitcoin Market cap / Stablecoin Market cap. We use the following stablecoins for the supply: USDT, TUSD, USDC, USDP, GUSD, DAI, SAI, and BUSD. When the SSR is low, the current stablecoin supply has more “buying power” to purchase BTC. It serves as a proxy for the supply/demand mechanics between BTC and USD.Quick Take
The stablecoin supply ratio has broken the upper bound for the third time in five years. This suggests stablecoins are being redeemed for Bitcoin, which is encouraging during a risk-off environment and not being redeemed for dollars. The last two times the SSR broke the upper BB was in Jan 2021 and June 2019, when Bitcoin hit a local top on both occasions. The SSR is still relatively close to all-time lows — suggesting a lot of stablecoin buying power is still yet to be deployed.
SSR: (Source: Glassnode)
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