Low SSR Value

Definition ∞ A Low SSR Value indicates a reduced figure for the Stablecoin Supply Ratio (SSR), which compares the market capitalization of a specific cryptocurrency to the total market capitalization of all stablecoins. A lower SSR implies that stablecoins collectively possess greater purchasing power relative to the cryptocurrency in question. This suggests ample dry powder.
Context ∞ A low SSR value is often interpreted as a bullish signal for the cryptocurrency, suggesting that a significant amount of stablecoin capital is available to acquire the asset, potentially driving its price upward. Conversely, a high SSR value might indicate that stablecoins have less relative purchasing power, possibly limiting upward price momentum. This metric is a key liquidity indicator.