The Stablecoin Supply Ratio (SSR) is a vital market indicator that has been steadily climbing since the start of the year, signifying a decrease in the purchasing power of stablecoins.

The SSR is a metric that provides insight into the supply and demand dynamics between Bitcoin (BTC) and the U.S. dollar. The calculation of SSR involves dividing the total supply of stablecoins by the market capitalization of Bitcoin.

When the SSR is low, it indicates that the buying power of stablecoins is high. This means that for each dollar represented by stablecoins, there is a larger portion of Bitcoin’s market cap available for purchase.

On the other hand, a high SSR suggests that the buying power of stablecoins is low. In this scenario, each dollar represented by stablecoins can buy a smaller portion of Bitcoin’s market cap.

Crypto trading on centralized exchanges declined by 12% to $2.36 trillion. This is the lowest volume recorded since the beginning of the year, indicating a significant downturn in trading activity, according to CCData.

A breakdown of these trading activities showed that spot trading volume fell 10.5% to $515 billion —the second-lowest since March 2019. On the other hand, derivatives volume fell 12.7% to $1.85 trillion, which is the second-lowest volume since December 2020.

The crypto research firm attributed the diminished volume to the lack of price action volatility in significant crypto assets, including Bitcoin (BTC) and Ethereum (ETH), which traditionally drive trading volumes. CryptoSlate Insight reported that BTC’s price movement in July was “closely confined” as the flagship digital asset had “virtually no change in its price” on some days.