Stablecoin supply has been rising fast lately, and it’s catching the attention of crypto investors. The biggest growth is happening on Ethereum, and many believe this might be the signal we’ve been waiting for — the beginning of a new altcoin season.

Two major U.S. laws recently passed — the GENIUS and STABLE Acts — are bringing more clarity and protection to stablecoins. These new regulations aim to make the crypto space safer and more transparent for users, and they seem to be working. As a result, stablecoins are gaining momentum again.

Right now, stablecoins on the Ethereum network have reached a new all-time high of around $130 billion. This surge began after a low point in August 2023 and has been growing steadily ever since. Ethereum continues to dominate in the stablecoin market, thanks in part to major companies building financial tools and services on the Ethereum blockchain.

When stablecoins are flowing into the market, it usually means one of two things: either investors are cashing out profits from other cryptocurrencies, or they’re preparing to buy more altcoins. In this case, it’s a mix of both. More stablecoins mean more liquidity, which often leads to rising prices in altcoins.

The growth in stablecoin supply isn’t limited to Ethereum. It’s happening across multiple blockchains. Some analysts predict that by 2030, stablecoins could make up 10% of the global M2 money supply — that’s about $3 trillion. If that happens, it could fuel a major bull run across the entire crypto market.

PayPal’s stablecoin, PYUSD, is also growing fast. On Ethereum, it’s nearing the $1 billion mark. On Solana, it has already hit $250 million, according to data from Token Terminal.

Tether (USDT), the largest stablecoin by market cap, is also back in growth mode. This increase is mostly due to capital moving away from Bitcoin and flowing into USDT. A large portion of these USDT transfers is happening on the TRON network.

Meanwhile, Circle’s USDC is seeing record-breaking activity on the Aptos blockchain. Monthly transfer volume reached $8.6 billion, with over 23 million transfers in a single month.

The United States is playing a big role in this trend. The country currently holds $347 million in stablecoins and is working toward building a reserve of top cryptocurrencies like Bitcoin and Ethereum. This growing pool of stablecoins could help fund that reserve and support future crypto development.

So, what does this all mean for altcoins? Many experts believe that stablecoin flows might be the key to unlocking the next altcoin rally. Right now, stablecoin dominance is around 4.22%, and it’s showing signs of weakness. If it breaks below certain levels — known as the “neckline” in technical analysis — it could trigger a full-blown altcoin season.

Why does this matter? Because when stablecoin dominance drops, investors often shift their money into altcoins instead.

Another key factor is Bitcoin dominance. In just two weeks, Bitcoin’s share of the crypto market dropped from 62.5% to 59.56%. If it keeps falling, that could open the door for altcoins to shine.

In short: more stablecoins = more liquidity = more opportunities for altcoins to pump. If current trends continue, we could be on the edge of a major move in the altcoin market. Keep an eye on stablecoin flows — they might be the spark that sets off the next crypto boom.