Authored by Zoltan Vardai via CoinTelegraph.com,

The record $300 billion stablecoin market capitalization may signal that more investor capital is flowing onchain, which could act as “rocket fuel” for cryptocurrency valuations, according to market analysts.

The total stablecoin supply has reached a new record of over $300 billion on Friday, marking a 46.8% year-to-date growth rate that may outpace the previous year’s stablecoin market growth, Cointelegraph reported.

The record comes at the start of October, historically the second-best month for Bitcoin, reinforcing investor optimism around a potential “Uptober” rally.

“Stablecoin supply may have crossed 300 billion dollars, but this is not capital waiting on the sidelines. It is moving through markets with purpose,” according to Andrei Grachev, founding partner at synthetic dollar protocol Falcon Finance.

“Transfer volumes are in the trillions each month. Velocity metrics show constant activity across networks,” Grachev told Cointelegraph. “They are being used—not just held. This is capital at work, not capital on hold.” 

“Stablecoins are settling trades, funding positions, and giving users dollar access where banks fall short,” he added. 

Source: DeFiLlama.com

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Stablecoins have several use cases beyond investment, including in payments, remittances, merchant payments and as a means of saving. A growing supply may also indicate more stablecoin usage for daily payments or institutional settlements.

The $300 billion milestone may signal a “rebound in digital assets” along with the growing integration of stablecoins in global finance, according to Ricardo Santos, the chief technical officer at stablecoin-based fintech payment company Mansa Finance.

The stablecoin supply’s “expansion is often interpreted as a sign of fresh dollar-equivalent liquidity that can quickly rotate into Bitcoin, Ethereum or altcoins,” he told Cointelegraph. “In this sense, the $300 billion threshold looks like rocket fuel for the next market cycle.”

Santos pointed to stablecoin adoption in countries such as Nigeria, Turkey and Argentina, where residents use US dollar-pegged tokens as “de facto dollars” for everyday transactions.

Stablecoins are also being integrated into payment systems by global financial players such as Visa, further embedding them into mainstream financial infrastructure.

Source: Lookonchain

During the past month, Circle minted $8 billion worth of USDC on the Solana network alone, with $750 million minted on Thursday, according to blockchain data platform Lookonchain’s X post.

“Capital doesn’t stay idle for long,” according to technical analyst and popular crypto trader Kyle Doops, who expects the record stablecoin supply to start flowing into the cryptocurrency market.