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Crypto's powder keg 🛢️
Stablecoin reserves have surged to $160 billion, signaling massive "dry powder" accumulation across crypto markets.
Stephen Graves
August 19, 2025
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📝 What you need to know
The stablecoin supply has climbed to $160 billion, up 20% since February—with $32 billion sitting on exchanges as inflows top $1.2 billion.
That, according to a new report, signals an accumulation of “dry powder” that has historically presaged major crypto rallies—even as Bitcoin and Ethereum trade flat on the day.
But analysts cautioned Decrypt that they’re taking a “wait-and-see stance,” noting that while stablecoin reserves show "plenty of liquidity on the sidelines," it "doesn't automatically mean a rally is imminent.”
Meanwhile, the stablecoin space itself is growing apace, with Wyoming launching Frontier Stable Token (FRNT), the first state-backed token issued in the U.S. Interest generated by FRNT’s reserves will go to the state’s School Foundation Fund, serving its citizens as a public good.
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