Liu
said
that
while
a
portion
of
that
capital
is
being
used
for
other
purposes
–
for
example,
to
earn
yield
through
DeFi
protocols
–
the
sheer
size
of
the
available
liquidity
meant
that,
if
crypto
prices
start
rising
again,
stablecoins
will
likely
add
fuel
to
the
fire.
It’s
not
just
the
total
stablecoin
market
capitalization
that’s
important,
but
where
these
tokens
are
located.
For
example,
stablecoins
held
on
crypto
exchanges
are
easier
to
deploy
into
the
market
rapidly
–
and
historical
data
suggests
that
an
increase
in
stablecoins
on
exchanges
tends
to
precede
higher
prices.
According
to
CryptoQuant,
stablecoins
on
exchanges
have
grown
by
20%
this
year.
