MEXC’s Tracy Jin predicts that a billion-dollar Stablecoin inflow could raise Bitcoin prices by 8-10%.
Bitcoin (BTC) is increasingly benefiting from stable liquidity growth. On Wednesday, April 30th, Crypto Exchange MEXC COO Tracy Jin shared insights with Crypto.news about the growing role of stubcoin in the Bitcoin ecosystem.
“The influx of Fiat, converted to tethers and circles, is steadily flowing into Bitcoin, which remains a major driver of price growth this year. Currently, another billion people in Stubcoin tend to increase Bitcoin by 8-10%,” said MEXC’s Tracy Gin.
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Zinn explained that demand for stable rocks remains high despite macroeconomic uncertainty. Stablecoin’s total market capitalization has increased by more than $38 billion since the start of the year, and is expected to continue to increase. This additional liquidity supports an increase in demand for Bitcoin.
“Despite the recent volatile market situation, Stablecoin demand is resilient and is growing at over $38 billion a year. Currently, Stablecoins accounts for 1% of the world’s M2 USD money supply, processing more than last year’s volumes, including 2.8T last year.”
Stablecoins are worth $2 trillion by 2026
One key factor in this growth is the role stubcoin plays in filling traditional financial markets and crypto ecosystems. This is especially important for crypto investors, especially during periods of increased volatility. According to Jin, the utility will help drive Stablecoin’s market capitalization to more than $2 trillion by 2026.
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“The market capitalization of Stubcoin exceeds $2 trillion by 2026, with many sovereign banks and companies exploring the issuance of stubcoin in other Fiat currencies, particularly with governments prioritizing clarity on regulations, the market capitalization of Stubcoin exceeds $2 trillion by 2026, continuing to drive the evolution of financial services, and the round pad for hedges as a hedge against volatility and for broad capital acquiescence.
This represents a 200% increase from the current $241 billion level. For Bitcoin, this could lead to a significant boost to available liquidity and put upward pressure on its prices.
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