Key economic signals show that more money is entering the financial system, with a good portion flowing into the crypto market.

As explained by an analyst, four factors are driving this trend: rising global money supply, record-breaking stablecoin growth, altcoin strength and regulatory clarity. 

Why Does Global Money Supply Matter?

First, the global M2 money supply. which includes cash, checking accounts, and liquid short-term investments, which is expanding. When M2 goes up, it means more money is available for spending and investing.

Historically, crypto prices have often reacted positively to M2 growth, typically after a lag of about 70 to 77 days.

Related: Schiff to Give Bitcoin Conference ‘Reality Check’ Similar to 2006 Warning

Altcoins Stay Strong Despite Market Volatility

This liquidity boost comes even as the crypto market faced recent volatility. Two major selloffs wiped out over $1 billion in value. But despite these swings, some altcoins are holding steady or gaining strength.

One standout example is Sui (SUI). Sui’s DeFi sector recently crossed $1.5 billion in total value locked (TVL). Sui’s liquidity platform, DeepBook, is active, developers are building more tools, and interest is growing across the network.

How Do Stablecoins Fit In?

The second major driver is stablecoins. Stablecoin supply hit $231 billion—its highest level ever. These coins, such as USDT and USDC, are often used as ‘dry powder’ to buy other crypto assets, meaning more buying power sits ready in the market.

And stablecoin use is spreading to newer blockchain networks. Chains like Base, Solana, and Sui handled over $8 billion in stablecoin volume just in the past 30 days, showing growing adoption beyond the main platforms.

Related: Massive Crypto Unlocks This Week: TRUMP, ZKJ, SAROS Lead $400M+ Release

Regulatory Clarity

Finally, new regulations in the US are starting to take effect. Laws being considered, like the Genius Act, makes it easier to launch stablecoins. With more stablecoins entering the market, crypto trading becomes faster and easier.