The market capitalization of stablecoins has surpassed $250 billion. When will the funds start to flow?

According to Gate News and TapChiBitcoin, the supply of stablecoins has surged to over $250 billion, with Bitcoin accounting for a significant portion of that capital. Many are wondering: when will the funds start to flow? Although skepticism remains, familiar patterns are beginning to emerge—these patterns are believed to be the early stages of major breakthroughs for alts.

The 90-day change in the total supply of stablecoins has turned green, similar to the levels before the last major market rebound. Currently, weekly inflows have reached billions of dollars, so this is not idle capital, but capital waiting to be deployed when risk appetite recovers.

(Source: Alpharactal)

As the reserves of stablecoins increase, the market seems to be entering a phase of reaccumulation. When macro conditions and momentum align, ample liquidity will fuel the next altcoin breakout.

USDT dominates

As the total market capitalization of stablecoins approaches $250 billion (about 7.5% of the total value of cryptocurrencies), one name continues to stand out above the rest.

(Source: Alpharactal)

Tether (USDT) currently accounts for 66.2% of all circulating stablecoins. This advantage reflects its strong liquidity and traders' confidence, making it the main bridge between fiat and cryptocurrencies.

USDT dominates capital flows, centralizes liquidity, and indicates when and where the next shift in stablecoin reserves will occur.

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

Sebastian Pfeiffer, Managing Director of Impossible Cloud Network, stated: "Many people are celebrating the liquidity that the stablecoin craze will bring to digital assets, but the direction of this liquidity seems unclear... because it appears unlikely that all the liquidity from stablecoins will flow into the decentralized crypto ecosystem. In fact, it is more likely that they will ultimately end up in the hands of centralized providers and systems that control these assets."

Will all of this lead to the arrival of the alts season?

Bitcoin and stablecoins currently account for 73.5% of the total market capitalization of cryptocurrencies—this is the latest level during the major accumulation phase of alts in previous cycles. Historically, when the dominance of BTC and stablecoins soars above 70%, it indicates that investors are funneling funds into lower volatility assets, which is often a precursor to shifting towards higher-risk altcoins when market conditions are favorable.

(Source: Alpharactal)

Despite skepticism about the upcoming altcoin season, current data tells a different story. A significant amount of overlooked capital is sitting in Bitcoin and stablecoins, waiting for the right technical setup to flow back into the higher-risk alts.