Nearly half of the stablecoin supply in circulation has remained on exchanges for more than a year.

On June 17, blockchain outlet U.Today reported that CryptoQuant on-chain data showed the exchange supply ratio has been stuck in a 0.40 to 0.46 range since December 2024.

That means 40 to 46 percent of all circulating stablecoins are piling up on trading platforms as parked funds. The outlet said the funds have effectively been unmoved for a long period. It suggests investors are staying cautious by maintaining cash-like standby assets rather than deploying funds aggressively.

The stablecoin liquidity structure has also changed little even as bitcoin showed sharp volatility over the past 18 months. Bitcoin rose to around $125,000, near an all-time high, after late 2024 before falling to around $60,000, but the change in the share of stablecoins on exchanges was only about 5 percentage points. Prices swung widely, but the parked stablecoin funds remained on exchanges.

CryptoQuant interpreted this not as a lack of liquidity but as an issue of investor sentiment. "Liquidity remains abundant but is moving very selectively," it said, adding that "even small changes in investor conviction, risk appetite and fund deployment are creating excessive volatility across the bitcoin market." It said the standby funds are sufficient, but the pace and intensity of conversion into actual buying are limited.

By exchange, the concentration in Binance stood out. Binance was estimated to consistently hold 25 to 30 percent of the total global stablecoin supply. Based on stablecoins deposited on exchanges, that would mean Binance controls more than half of the global amount. The data also reaffirmed that stablecoin liquidity is concentrated in a small number of large exchanges.

The data also suggest the cryptocurrency market may have formed a structural bottom to some extent. The outlet reported that market participants may already have priced in a significant part of downside liquidity risk. It means ample cash-like funds piled up on exchanges could act as a buffer for the market in sharp downturns.

From the perspective of long-term investors, there was also an assessment that the current structure is favorable for patient buying in tranches. The outlet said the key point is the location of the funds rather than the direction itself. It presented as a recent feature of the cryptocurrency market that money is not absent, but is waiting on exchanges and not moving until conviction emerges.