CEX Stablecoin Surge Signals Potential Market Rebound
CEX Stablecoin Surge – Over the past month, centralized exchanges (CEXs) have seen a significant increase in stablecoin holdings, with CryptoQuant reporting reserves of $73.13 billion, up $10 billion from the previous month. Just days prior, on Nov. 5, reserves reached an all-time high of $73.23 billion before dipping slightly by $200 million.
Compared to November 2024, the reserves have more than doubled. A year ago, exchanges held only $33 billion in stablecoins, highlighting the rapid acceleration of stablecoin adoption among traders. Popular crypto analyst Ali Martinez pointed out that this surge could indicate more users are “swapping crypto into stables,” sparking speculation across social platforms.
Technical Indicators and Market Context
The Stablecoin Supply Ratio (SSR) Oscillator remains near cycle lows at 12.795, a notable drop from July 2025 levels above 19. Meanwhile, Bitcoin (BTC) struggles to stay above the $100,000 mark, currently trading at $101,900, down 1.39% in the past 24 hours.
The wider crypto market mirrors this caution. The total market cap has slipped to around $3.5 trillion, down from $4 trillion, following major liquidations, including the $19 billion liquidation event on Oct. 11. Tokens like Ethereum (ETH), XRP, and Solana (SOL) have all seen daily declines, while smaller altcoins such as ZEC and ICP have posted impressive gains of 21.2% and 20.38%, respectively.
What Rising Stablecoin Reserves Mean
Historically, a surge in CEX stablecoin reserves can signal a bearish sentiment, as traders pull liquidity from volatile crypto assets into stablecoins. Yet, it also represents ample liquidity ready to deploy, which could potentially fuel future price rallies. Analysts suggest that while traders currently wait on the sidelines, this accumulation could act as either a defensive strategy or a springboard for renewed market momentum when conditions shift.
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