Centralized exchange (CEX) stablecoin reserves have increased by $10 billion over the past 30 days, reaching a total of $73.13 billion, after briefly hitting an all-time high of $73.23 billion on November 5 before a slight decline. This represents a $40 billion rise compared to the previous year, when reserves stood at just $33 billion in November 2024, reflecting accelerated stablecoin adoption.
The surge is driven by a negative correlation with cryptocurrency performance, as traders shift into stablecoins to protect against price fluctuations. The total cryptocurrency market capitalization is approximately $3.5 trillion, down $500 billion from its recent peak of $4.5 trillion, following mass liquidations, including a $19 billion event on October 11. The Stablecoin Supply Ratio Oscillator (SSR Oscillator) is at cycle lows, with a current reading of 12.795, significantly lower than its July 2025 level above 19, indicating reduced risk appetite.
Major cryptocurrencies have seen declines: Bitcoin (BTC) dropped 1.4% to around $101,000, struggling to surpass the $100,000 mark; Ethereum (ETH) fell 1.1% to approximately $3,352; XRP decreased by 4.3%; and Solana (SOL) declined by 1%. However, some altcoins posted gains, with DeAgentAI surging 647.8% to $14.43 and ZEC rising 21.2% to $623.86 over 24 hours, suggesting sector rotation and selective risk-taking.
Analysts, including Ali Martinez, note that the reserve buildup could be bearish in the short term as traders swap crypto for stables, but it also represents sidelined buying power that may trigger a market rebound if sentiment improves. Historically, increased stablecoin deposits have preceded significant rallies, and current reserves could convert into purchasing pressure, reigniting momentum once clearer direction emerges.
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