Stablecoin reserves rise to record high: What's behind it?

Stablecoin reserves rise to record high: What's behind it?

Stability in the cryptocurrency market is increasingly being shaped by recent developments in stablecoin reserves on centralized exchanges (CEX). Over the past 30 days, these reserves have increased by an impressive $10 billion and now reach a total value of $73.13 billion. This represents an increase of $40 billion compared to last year, when reserves were just $33 billion. On November 5, CEX reserves reached an all-time high of $73.23 billion before declining by $200 million, Crypto.news reports.

Analysts are divided about the significance of this increase. While some see the increase in stablecoin reserves as a short-term bearish signal, others see it as an accumulation of purchasing power that could potentially lead to a crypto rally if market sentiment improves. Currently, the stablecoin Supply Ratio Oscillator (SSR Oscillator) is at a cycle low of 12.795, down from over 19 in July 2025.

Market development and trends

The overall cryptocurrency market has suffered a 0.6% decline in recent weeks and is now at around $3.5 trillion, representing a loss of around $500 billion due to massive liquidations. In this uncertain market environment, Bitcoin (BTC) and Ethereum (ETH) appear weak. BTC is currently trading at $101,900, down 1.39% in a day. ETH is at around $3,352 and has lost 1.1%. XRP and Solana (SOL) also show similar developments with declines of 4.3% and 1% respectively.

Regardless of the market situation, some smaller altcoins have made notable gains. The DeAgentAI token has gained an impressive 647.8% within 24 hours. Such movements could be an indication that some investors recognize the market's potential and are making targeted investments in promising projects.

Investors' strategy

Historically, an increase in stablecoin reserves suggests that investors are willing to transfer liquidity from volatile assets into stablecoins. This can be interpreted as a defensive strategy aimed at preparing for future market opportunities. Current trading patterns show that many traders are waiting for better entry points and clearer market directions before re-entering the market. The overall picture remains tense, but positive market developments in the near future could encourage investors to become more active again.