Stablecoin reaches $250 billion: The silent story behind the altcoin game

The supply of stablecoins has surged to over 250 billion dollars, and with Bitcoin holding the majority of that capital, many are asking: when will the flow of money change direction?

While there is still skepticism, familiar patterns are beginning to emerge – patterns similar to those recognized as the early stages of a major altcoin breakout.

Supply stablecoin surge

The 90-day change in the total supply of stablecoins has turned green, similar to the levels seen last before major market rallies.

The inflow of funds weekly has now reached billions of dollars, so this is not idle capital sitting on the sidelines, but capital waiting to be deployed when risk appetite returns.

Source: AlphractalWhen stablecoin reserves increase, the market seems to be entering a re-accumulation phase, with abundant liquidity ready to drive the next altcoin breakout as macro conditions and momentum align.

USDT holds a large share

As the total market capitalization of stablecoins approaches 250 billion dollars – accounting for about 7.5% of the total cryptocurrency market value, one name continues to stand out from the rest.

Source: AlphractalTether (USDT) currently accounts for 66.2% of the total stablecoins in circulation. This dominance indicates deep liquidity and trader trust, positioning Tether as the primary bridge between fiat and cryptocurrency.

USDT dominates the capital flow, concentrating liquidity and signaling when and where stablecoin reserves will move next.

However, there is growing concern that this concentration of liquidity does not translate into direct support for decentralized markets, as some have predicted.

Sebastian Pfeiffer, the managing director of Impossible Cloud Network, said that:

"Many people are celebrating the liquidity that this stablecoin boom is said to bring to digital assets, but it seems that few are clear about where that liquidity will go... Because it seems unlikely that all the stablecoin liquidity will find its way into the decentralized crypto ecosystem. Indeed, it seems much more likely that it will remain in the hands of providers and centralized systems controlling these assets."

So, how much of the boom will translate into increased value for altcoin?

Could all of this lead to an altcoin season ?

Bitcoin and stablecoins currently account for 73.5% of the total crypto market capitalization — the highest level seen recently during major altcoin accumulation phases in previous cycles.

Historically, when the dominance of BTC and stablecoins surges above 70%, it signals that investors are pouring capital into lower volatility assets, which is often a precursor to shifting to riskier altcoins when market conditions are favorable.

Source: AlphractalDespite the skepticism about the upcoming altcoin season, the current data tells a different story.

A large amount of overlooked capital is being sent into Bitcoin and stablecoins, waiting for the right technical setup to flow back into higher-risk altcoins.

Minh Anh