# Stablecoin Supply Outpaces Bitcoin Spot ETF Inflows, Says 10x Research
Stablecoin supply data is emerging as a more reliable indicator of crypto market trends than Bitcoin spot ETF fund flows, according to 10x Research.
In a recent report, 10x Research founder Marcus Thielen suggested that less attention should be paid to Bitcoin ETF fund flows. “The issuers of stablecoins are the new sheriffs in town and are driving the cryptocurrency market upwards,” Thielen noted.
Stablecoins, which serve as the bridge linking traditional fiat currencies with digital assets, are crucial to providing liquidity in trading. As market participants deposit fiat currency and mint stablecoins, changes in the supply of these coins offer important clues about the health of the cryptocurrency market, the 10x report indicated.
According to 10x Research, the combined supply of the two leading stablecoins—Tether’s USDT and Circle’s USDC—increased by nearly $10 billion over the past 30 days, significantly outpacing the $5 billion net inflow into Bitcoin spot ETFs during the same period. Additional data from CoinGecko showed that the supply of the third and fourth largest stablecoins, MakerDAO’s DAI and Hong Kong-based First Digital’s FDUSD, rose by 5 to 10 percent in the same timeframe.
Over the past week alone, the supply of USDT surged by $2.4 billion, marking one of the highest weekly increases during the current bull market phase.
“The pace of fiat moving into cryptocurrencies has accelerated,” Thielen observed, adding that the minting of stablecoins is double that of Bitcoin ETF net inflows, and unlike ETFs, stablecoins are only exposed to long bets.
