According to crypto analyst Arab Chain, Binance reinforced its dominance in the global derivatives market. The return of hedge funds and institutional investors played a key role in this growth. Both long and short positions increased significantly, indicating not only liquidations but also the creation of new positions. In other words, fresh participants entered the market at scale. 

However, some analysts remain cautious about the sharp rise. Arab Chain warned that such momentum often precedes a correction. Still, support from spot markets and stablecoin reserves will be crucial for sustaining futures activity. 

Stablecoin Growth Fuels Market Liquidity 

The expansion of futures trading requires liquidity from spot markets. At this stage, stablecoin growth has become an essential driver. On August 1, the global stablecoin market cap stood at $276.2 billion. By the end of the month, it had risen 7.38%. 

In early September, the market cap added another 0.65%, reaching $298 billion. This steady inflow provided much-needed liquidity to the derivatives market. As a result, futures momentum gained solid ground. 

Meanwhile, analysts underline that stablecoin inflows will remain the key factor for sustainable growth. Ultimately, if capital inflows continue at this pace, a derivatives-led bull run could be on the horizon. 

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Crypto analyst Timo Oinonen described this as a “brewing liquidity explosion.” According to him, investors are sitting on USDT and USDC—low-volatility assets—while waiting for clearer market signals. 

Between 2023 and the end of 2024, Bitcoin and stablecoin reserves were strongly correlated. However, this relationship reversed in early 2025. While Bitcoin flows out of exchanges, stablecoin inflows have accelerated, showing increased capital availability on trading platforms. 

Meanwhile, the global stablecoin market cap has exceeded $254 billion. USDT leads with $159 billion, followed by USDC at $62 billion. This growing volume forms a solid foundation for a potential altcoin rally. 

Bitcoin Dominance Declines, TOTAL2 Chart Looks Promising 

Bitcoin’s market dominance has been steadily declining over the past 90 days. This indicates capital is starting to shift toward altcoins. 

Joao Wedson, CEO of Alpharactal, highlighted that the Altcoin Season Index is sending positive signals. He noted that Bitcoin has outperformed altcoins in recent months, making this an opportune time to accumulate undervalued tokens. 

With rising stablecoin reserves on Binance and price action compressing near critical resistance levels, a strong altcoin season could ignite rapidly—if the right catalyst appears. 

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