{"id":193201,"date":"2025-06-18T01:57:10","date_gmt":"2025-06-18T01:57:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/193201\/"},"modified":"2025-06-18T01:57:10","modified_gmt":"2025-06-18T01:57:10","slug":"ethereums-1-4b-stablecoin-surge-sparks-bullish-hopes-but","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/193201\/","title":{"rendered":"Ethereum&#8217;s $1.4B stablecoin surge sparks bullish hopes, BUT&#8230;"},"content":{"rendered":"<ul class=\"ul1\">\n<li class=\"li1\">ETH recently recorded one of the largest increases in stablecoin supply\u2014often a sign of rising utility.<\/li>\n<li class=\"li1\">Investors\u2019 long-term outlook for ETH has surged accordingly. However, spot traders are still selling to the market.<\/li>\n<\/ul>\n<p class=\"p1\">Despite <a href=\"https:\/\/www.ambcrypto.com\/predictions\/ethereum-price-prediction\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener\">Ethereum\u2019s [ETH]<\/a> positive outlook, its price dropped by 1.75%, continuing the downward trend observed over the past week.<\/p>\n<p class=\"p1\">Analysis indicates that the broader sentiment around ETH remains bullish. However, the asset continues to face downward pressure\u2014particularly from spot transfers that are not aligned with the broader market outlook.<\/p>\n<p>Surge in stablecoin supply\u2014What happens to ETH?<\/p>\n<p class=\"p1\">In the past 24 hours, Ethereum recorded one of the most significant stablecoin inflows in the market.<\/p>\n<p class=\"p1\">Roughly $1.4 billion worth of stablecoins were added to the Ethereum network; a substantial amount. A surge of this magnitude suggests increased demand for stablecoins by ETH users.<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/AB461A87-97E3-49CF-AC80-904D32B5C6A0.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-502510\" class=\"size-full wp-image-502510\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"Stablecoin supply change chart. \" width=\"356\" height=\"432\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/AB461A87-97E3-49CF-AC80-904D32B5C6A0.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-502510\" class=\"wp-caption-text\">Source: Artemis<\/p>\n<p class=\"p1\">This implies more activity on the network, which could lead to increased ETH usage. As a result, wallet balances holding ETH are likely to rise.<\/p>\n<p class=\"p1\">According to Artemis data, the Bridged Netflow metric also spiked over the past 24 hours.<\/p>\n<p class=\"p1\">Bridged Netflow measures the volume of assets moved into ETH from other chains. At the time of writing, $114,000 had flowed into Ethereum\u2014most of it from SOL investors selling their holdings.<\/p>\n<p class=\"p1\">An increase in bridged inflow\u2014especially one dominated by holders of major cryptocurrencies\u2014suggests these groups consider ETH more bullish in comparison.<\/p>\n<p class=\"p1\">If this trend continues, it\u2019s likely to positively impact ETH\u2019s price, indicating growing capital inflow and, more importantly, interest from major investors.<\/p>\n<p>Long-term outlook remains strong<\/p>\n<p class=\"p1\">Notably, this surge in stablecoin supply coincided with a significant rise in Total Value Locked (TVL) across Ethereum protocols.<\/p>\n<p class=\"p1\">TVL tracks the amount of liquidity deposited into protocols for various activities over time.<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/CF35A80A-B2A4-4A5A-9CBE-4E9AECF12C6D.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-502511\" class=\"size-full wp-image-502511\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"ETH total value locked chart. \" width=\"718\" height=\"419\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/CF35A80A-B2A4-4A5A-9CBE-4E9AECF12C6D.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-502511\" class=\"wp-caption-text\">Source: DeFiLlama<\/p>\n<p class=\"p1\">As of press time, TVL had risen by 3.46%, climbing from $83.674 billion to $86.558 billion\u2014an increase of $2.88 billion in a short span.<\/p>\n<p class=\"p1\">This further supports the market\u2019s bullish sentiment. It suggests that a large portion of ETH has been locked up by investors, thereby reducing its circulating supply.<\/p>\n<p class=\"p1\">However, AMBCrypto analysis traced the recent market decline to increased activity by spot traders who have been selling their holdings.<\/p>\n<p class=\"p1\">At press time, these traders had offloaded $61 million worth of ETH.<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/CFC84A02-ECAF-4BC2-8223-70F6292E68B4.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-502509\" class=\"size-full wp-image-502509\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"ETH spot Netflow chart. \" width=\"1365\" height=\"417\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/CFC84A02-ECAF-4BC2-8223-70F6292E68B4.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-502509\" class=\"wp-caption-text\">Source: CoinGlass<\/p>\n<p class=\"p1\">This move appears to be a capital-preservation tactic, as these investors anticipate a potential ETH drop\u2014contributing to the recent price decline.<\/p>\n<p class=\"p1\">Continued spot selling is likely to exert more pressure on the market, possibly pushing ETH\u2019s price further down.<\/p>\n<p>What does the chart say?<\/p>\n<p class=\"p1\">ETH has continued to consolidate since entering this phase on the 13th of May\u2014over a month ago.<\/p>\n<p class=\"p1\">Typically, inflows of this kind suggest investors are accumulating ahead of a potential breakout and a longer-term rally.<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1A707B2B-2B7E-4B43-9A60-E0E07CF3A027.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-502508\" class=\"size-full wp-image-502508\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"ETH price chart. \" width=\"1281\" height=\"616\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1A707B2B-2B7E-4B43-9A60-E0E07CF3A027.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-502508\" class=\"wp-caption-text\">Source: Trading View<\/p>\n<p class=\"p1\">However, in the short term, ETH faces two potential outcomes. It could rally from its current support level, breaking toward the channel\u2019s resistance\u2014with momentum determining the next move.<\/p>\n<p class=\"p1\">Alternatively, it may decline to the lower boundaries of one of the next two support levels\u2014either the dashed line or the channel\u2019s lower support.<\/p>\n<p class=\"p1\">The direction ETH takes from either point will largely depend on market momentum.<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\tNext: <a href=\"https:\/\/ambcrypto.com\/spx6900-drops-16-in-24-hours-but-is-this-the-start-of-a-new-rally\/\" rel=\"prev noopener\" data-wpel-link=\"internal\" target=\"_blank\">SPX6900 drops 16% in 24 hours, but is this the start of a new rally?<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"ETH recently recorded one of the largest increases in stablecoin supply\u2014often a sign of rising utility. Investors\u2019 long-term&hellip;\n","protected":false},"author":2,"featured_media":193202,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-193201","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114701890039604961","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/193201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=193201"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/193201\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/193202"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=193201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=193201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=193201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}