Indicator Overview

The Stablecoin Year-on-Year % Change indicator provides a long-term perspective on stablecoin supply dynamics by calculating the percentage change in the combined market capitalisation of major stablecoins (primarily USDT and USDC) compared to exactly 365 days prior. It displays this YoY growth rate as a smoothed, filled area chart overlaid with Bitcoin’s price on a secondary logarithmic axis, featuring a dynamic gradient coloring that adapts to the visible timeframe—deep red for contraction (negative growth), white at neutral, and vibrant green for expansion (positive growth), with the scale and Y-axis automatically centered around zero for balanced visual symmetry. This metric serves as a macro indicator of sustained capital inflows or outflows, revealing structural trends in liquidity creation and crypto market health over full annual cycles.

How To Use

Extended green filled areas signal robust, multi-year stablecoin issuance growth, often marking the foundational liquidity buildup that supports major bull markets and reflects increasing institutional or retail capital commitment. Prolonged red areas indicate persistent contraction or stagnation in stablecoin supply, historically aligning with bearish regimes or reduced market participation. The adaptive zero-centered scale highlights regime shifts clearly: sustained moves above zero confirm an expanding liquidity base ideal for risk-on positioning, while drops below suggest caution or potential cycle endings. Traders can use extreme green zones to reinforce bullish convictions and red extremes for defensive strategies. Optional SMA/EMA overlays help identify trend persistence. Investors interpret consistent positive YoY momentum as a powerful macro tailwind for Bitcoin and altcoins, using this indicator to contextualize cycle maturity and gauge the broader availability of deployable capital in the cryptocurrency ecosystem.