Stablecoin and Global Liquidity Recovery: The Catalyst for the next Crypto Rally? What Will You Discover today? 1. Understanding the Significance of Liquidity for Bitcoin and the broader Crypto Market 2. Gearing up for a Stablecoin Liquidity Game-Changer as the Tokenization of U.S. Treasury Bonds accelerates. Let’s dive in. 1. Why Stablecoin Liquidity and Global Liquidity matter for Bitcoin and the rest of the crypto market Within both traditional finance and the rapidly evolving world of cryptocurrencies, liquidity plays a pivotal role in ensuring market stability and fostering growth. The chart provided illustrates a compelling correlation: as the Federal Reserve's balance sheet expands, Bitcoin and other cryptocurrencies typically witness a price surge. Zooming into today’s global liquidity picture, defined by the M2 metric, that combines all important money supply indicators across the globe, we're seeing a trend tilting towards a decline. This has placed Bitcoin and its crypto contemporaries in a somewhat muted phase. Diving a bit deeper, a mirroring trend emerges on blockchain networks within the total Stablecoin market cap, or what can be likened to cryptos' "M2" indicator. Post-April 2022, this Stablecoin metric dipped by a staggering $43 billion and is presently finding its feet just above the $120 billion threshold. For the crypto giants like Bitcoin and its peers to gain traction again, a rejuvenation of liquidity is non-negotiable. Where do we stand in the current liquidity cycle, and what could potentially drive a resurgence in Stablecoin Liquidity? Market Momentum Gearing Up for a 2024 Rebound📈 In the midst of prevailing uncertainty, there emerges a beacon of hope. Both the central banks' balance sheets and the Stablecoin market cap are showcasing a diminishing rate of decline. This points towards a potential relaxation in the liquidity crunch, hinting that the worst is behind us. Delving into the global money supply, specifically the M2 metric, we can already notice a positive shift. Globally, the growth rate of the money supply has swung back into positive territory. In the past, global M2 growth and especially the expansion of the Fed's balance sheet led to a higher Bitcoin price and initiated the next bull market for cryptocurrencies. Building upon this, and recent developments in the Fed Net Liquidity, which is calculated as Net Liquidity = Fed Balance Sheet - (TGA + Reverse REPO), indicate that more liquidity is flowing into the markets. This influx lays the foundation for potential growth in asset prices soon. If this positive trajectory maintains its course or even amplifies, several indicators point towards a significant liquidity revival on the horizon for 2024. 2. U.S. Treasury Bonds Tokenization and a new era for Stablecoin Liquidity Turning our gaze to the cryptocurrency market, we can observe that while the (TVL) in DeFi, including liquid staking, has been fairly steady around the $60 billion mark, there are early signs of a stabilization of the stablecoin market cap. Since April 2022, the stablecoin market cap declined by -26%, but this decline seems to come to an end and over the last few weeks the stablecoin market cap has been stabilizing above the $120 billion dollar mark. This could be a signal for a potential revival in on-chain liquidity and a resurgence of investors’ interest. This development is perhaps primarily driven by the ongoing tokenization of Real-World Assets (RWAs), that are used to back Stablecoins. For example, MakerDAOs DAI has been growing by over $1 billion since May and more and more Real-World Assets (especially U.S. Treasuries) are being used to back the Stablecoin to produce a yield of around 5% each year for everyone, who decides to lock their DAI into the Spark Protocol. The source of the yield can be verified on-chain and is generated by a mix of RWAs, staked Ethereum and other yield bearing assets. Tether's stUSDT stands out as another prime exemplar—a staked USDT iteration backed by RWAs, such as U.S. Treasuries, boasting an annual yield of around 4%-5%. The stUSDT's market cap has been on an upward trajectory, currently hovering around the $1 billion milestone. Stablecoin yields seem to finally become competitive again due to more and more RWAs being tokenized on blockchain networks. Examining the overarching RWAs sector, a pronounced surge is palpable, potentially signaling a liquidity reentry into crypto markets. This burgeoning on-chain evolution could herald the inception of a keenly awaited liquidity influx, essential for a lasting upswing in crypto asset values. While Bitcoin and Ethereum might witness minor retractions in their valuations, my bullish stance remains unshaken. The wider lens—spanning both traditional finance and on-chain indicators—paints a promising future tableau. From both a traditional and on-chain liquidity perspective, the crypto market's current risk-reward profile is arguably one of the most enticing we've encountered in recent memory. Remember, clarity and insights are paramount in our rapidly evolving financial landscape. Stay tuned for more in-depth analyses in subsequent publications.

Huge for Crypto & DeFi! 📈📈 Most of the growth for now is happening on Ethereum, it’s L2 (Base, Robinhood) and Solana!

Ethereum's L2s are quietly winning tokenized stock TRADING. 👀 🔹 Robinhood Chain: 27% of DEX volume (30d) 🔹 Base: 15%, together 42% 🔹 BNB Chain: 31%, down from 64% three months ago BNB holds the stocks. Ethereum's L2s win the trades. Data: @Blockworks

Immigration's fiscal impact in Denmark varies MASSIVELY by origin. Annual net contribution per person (2019): 🔹 Western immigrants: +52,000 DKK 🔹 Other non-Western immigrants: +14,000 DKK 🔹 Middle East, North Africa, Pakistan & Turkey: -74,000 DKK That's a 126,000 DKK annual gap between Western immigrants and those from the Middle East, North Africa, Pakistan & Turkey. 😅 Immigration is NOT one uniform fiscal outcome. Employment, age, and migration pathways matter enormously.

5.5x more new ETH staked this year. 📈 🔹 Oct 2024 to Oct 2025: +1.48M ETH 🔹 Oct 2025 to Oct 2026: +8.05M ETH 🔹 Total staked: 44.1M, an all-time high AGAIN The price is noisy. The conviction isn't. Data: @hanni_abu

ETH supply keeps rising, but the Merge still did its JOB. 👀 🔹 Since the Merge: 120.52M → 122.16M ETH (+1.36%) 🔹 Last 12 months: +1.00M ETH (+0.83%) 🔹 ~0.33%/yr since the Merge, vs ~3.6%/yr under proof-of-work (est.) Low inflation, not deflation. Data: @ultrasoundmoney

Crypto prices rebounded. Stablecoin supply SHRANK. Q3 2026: • Total supply: ~$309B, down ~3% • USDT: ~$184B, roughly 60% of supply • USDe grew ~22%; PYUSD ~25% A price rally doesn't automatically mean fresh stablecoin liquidity is entering the market. Data: ARK / Allium, September 30, 2026.

44.1M ETH staked. An all-time high AGAIN. 📈 🔹 36.1% of all ETH is now locked up 🔹 +8.05M ETH added in just 12 months 🔹 1.38M more ETH is waiting in line to stake More than a third of ETH is off the market and the line keeps growing. Data: @hanni_abu

Bitcoin has a supply cap. Ethereum doesn't. Yet since the Merge, Bitcoin's supply grew 3.7x FASTER. 👀 🔹 Bitcoin: +4.96% 🔹 Ether: +1.35% 🔹 Both now grow ~0.8-0.9% a year When demand returns, Ether's supply can shrink again. Bitcoin's can't. Great chart by @DecodeMarkets

Ethereum's L2s are turning a REAL profit now. 📈 🔹 Base: $2.75M onchain profit in 30 days 🔹 Robinhood Chain: $2.55M, right behind 🔹 Arbitrum One: $696k, about a quarter of Base Same lesson as tokenized stocks: distribution wins. Data: @growthepie_eth

ETH's burn has QUIETLY flatlined 📉 🔹 Since the Merge: 55.4% of new ETH burned 🔹 Last 30 days: just 2.7% 🔹 ETH supply now grows ~0.86%/yr, about the SAME as Bitcoin (~0.82%) "Lower inflation than BTC" was the bull case. For now it's gone. Only L1 demand brings it back. Data: @ultrasoundmoney

Ethereum still holds most of DeFi's money, but the TRADING has moved elsewhere. 👀 🔹 DeFi TVL share: 54.6% → 55.6% in 3 years 🔹 DEX volume share: 47.8% → 15.0% 🔹 Counting its L2s, Ethereum's ecosystem is back to 40.7% Ethereum is becoming DeFi's bank. Weakness, or exactly the design?