Crypto Prices Trade Sideways, But On-Chain Indicators Flash Growth

Crypto prices trade sideways, holding within narrow ranges, yet underlying metrics point to expansion. Over the past week, Bitcoin (BTC) has oscillated between $102,000 and $105,000.

Ethereum (ETH) has wavered around $2,450 to $2,550. These modest moves stand in stark contrast to accelerating on-chain fundamentals.

Onchain data shows stablecoin supply surged by roughly $80 billion over the last 365 days, reaching a record $240 billion.

Meanwhile, total on-chain loans vaulted to an all-time high above $24 billion, a figure largely unchallenged since January 2023.

Stablecoin Supply Hits New Highs

Stagnant crypto prices often worry traders. Yet, rising stablecoin reserves signal growing ecosystem demand. Most on-chain transactions—from decentralized finance (DeFi) exchanges to token swaps—depend on stablecoins.

As of June 5, 2025, the total market capitalization of major stablecoins—USDT, USDC, and DAI—hit $249 billion, up from $160 billion one year ago, according to DefiLlama data. That $80 billion increase represents a 50% annual gain.

Stablecoin growth typically precedes broader crypto adoption. In DeFi protocols such as Aave and Compound, more than $15 billion of stablecoins are locked in lending pools as collateral. These figures underscore why many on-chain metrics are flashing green.

On-Chain Lending Reaches Record Levels

Loans are the lifeblood of any financial ecosystem. DeFi lending platforms mirror traditional credit networks by extending liquidity to borrowers.

As of early June 2025, the total outstanding value of on-chain loans topped $24 billion per Token Terminal data. That level has climbed steadily since January 2023, when the figure stood near $8 billion.

These numbers reflect growing demand for borrowing and leverage. Aave’s total value locked (TVL) surpassed $24 billion.

With crypto prices in a holding pattern, investors appear more interested in yield than short-term appreciation. Data from DeFi Llama shows that total value locked across major lending platforms reached $8 billion.

Users can earn up to 5 percent on stablecoin deposits and 3 percent on ETH collateralized loans. That stands in sharp contrast to bank savings rates, which remain near zero.

Crypto Prices: Action and Market Psychology

Despite on-chain expansion, spot prices remain subdued. Bitcoin’s 14-day Relative Strength Index (RSI) has hovered around 50 since late May, reflecting neutral sentiment.

Ethereum’s RSI similarly sits near 52. On-chain data suggests accumulation rather than distribution. According to Glassnode latest data, the share of Bitcoin’s total supply held on exchanges has dipped below 11%—its lowest level since March 2018.

Around March 2020, more than 17.2% of all BTC was held on exchanges. Since that peak, about 6% of the total supply—roughly 1.26 million BTC—has been pulled off exchange wallets.

Crypto prices trade sideways while on-chain indicators paint a different picture: growth and accumulation. As of June 6, 2025, stablecoin supply and loan figures are at multi-year highs.

CryptoQuant’s latest Exchange Flows to Network Activity Ratio chart shows that Bitcoin holders are retaining their coins at levels not seen in over two years.

These metrics suggest that capital is entering the ecosystem even if spot buyers are on pause. Traders and investors should monitor these data points for insights into future price movements.

In short, a sideways market can mislead those focusing solely on crypto prices. The expanding stablecoin base and rising lending activity signal a maturing financial system. This may be the calm before the next crypto rally.