Markets move when liquidity moves. M2 is turning up, and that could spark life in a few key crypto projects. But not all. Some altcoins sit in perfect spots to gain. Others will get left behind. This article breaks down which altcoins look ready, why they stand out, and how this rise in liquidity could shape the next few months.
The truth is simple: when M2 money supply expands, only strong altcoins get fresh liquidity. If you want to stay ahead of that shift, or know which altcoins still have a real shot at a bull run, this is for you.
U.S. M2 Money Supply Just Hit a New All-Time High
U.S. M2 money supply just hit a new all-time high, and Bitcoin has always followed it. This chart is one of the strongest signals in crypto right now. M2 has climbed back to $22.3 trillion, and it is rising at the fastest pace since mid-2022. This is a clear sign that liquidity in the U.S. is turning again.
U.S. M2 Money Supply hits new all-time high of $22.3 Trillion 🤑📈🥳 pic.twitter.com/nYryFFj3Vk
— Barchart (@Barchart) December 5, 2025
The question is, why does this matter? Well, when M2 speeds up, risk assets rise. When M2 slows down, crypto bleeds. So, right now, M2 is rising.
US M2 at a new ATH despite liquidity growth slowing down.
Japan M2 at a new ATH despite BOJ hawkish remarks.
China and the EU M2 are at new ATHs too.
In the short term, we may get a correction.
But in the next 3-6 months, the markets are going way higher. pic.twitter.com/wHdNzGq50o
— Ted (@TedPillows) September 21, 2025
The next question is, what is driving this new wave? The Fed is expected to keep cutting rates. Lower rates make borrowing cheaper. This should push money into assets with more upside, like Bitcoin and key altcoins.
But, there is more. UBS expects the Fed to start buying around $40B in T-bills each month in early 2026. This would act like early-stage QE (quantitative easing). That’s a monetary policy. It’s when central banks start to stimulate the economy. They do this by increasing the money supply and lowering interest rates.
BREAKING:
🇺🇸 UBS says the Fed could buy $40B in T-bills per month starting early 2026.
That’s not tightening.
That’s liquidity.If this happens, risk assets won’t stay quiet. pic.twitter.com/A6v7HMeieD
— Merlijn The Trader (@MerlijnTrader) December 7, 2025
A Surge in Liquidity Is Coming
It is not public policy yet, but large institutions expect it. If the Fed cuts rates and buys T-bills at the same time, the jump in liquidity will be huge. This will also weaken the dollar. Higher M2, lower rates, and balance-sheet tools often push the dollar down. A weaker dollar has fueled:
- •Past Bitcoin breakouts.
- •Altcoin runs.
- •Rallies across risk assets.
I have been saying this for a while.
I literally shared this exact thing a week ago.
“It is for this reason that I am expecting the FED to announce some kind of “reserve management” undertaking to start adding assets back to their balance sheet to support the banking system.”… https://t.co/b5m9u4Z2oO
— Sykodelic 🔪 (@Sykodelic_) December 7, 2025
This is why the next liquidity cycle matters so much. Crypto reacts first when liquidity turns. In 2016–17 and 2020–21, rising M2 led to major bull runs. Now, liquidity is rising again. The market has not priced it in, and crypto could benefit the most. So, here are some of the coins that could benefit most from these higher liquidity levels.
Solana ($SOL)
Solana ($SOL) is one of the altcoins that can profit from a rising M2. Nowadays, having a spot ETF can make all the difference. And rest assured, currently there are already 7 $SOL spot ETFs live. Another 2 are still pending. See this list. The VanEck $SOL ETF was a recent addition.
VanEck’s Solana ETF, $VSOL, is now live and trading.
Prospectus: https://t.co/qEAAqPSncbpic.twitter.com/SnNaE6YbWv
— VanEck (@vaneck_us) November 17, 2025
Last week, the inflows for the $SOL spot ETFs were steady. The Bitwise $SOL ETF is currently the most popular and successful one. Total AUM (Assets Under Management) closes in on $900 million.
Solana Spot ETFs: Steady Institutional Inflows Continue
As of Dec 5: Solana spot ETFs recorded $15.7M in daily net inflows, contributing to $20.3M for the week.
Cumulative inflows have reached $638.9M, with total AUM now at $877.6M since launch.
Top performers on the day:
•… pic.twitter.com/aeexPOBAb2— Solana Stream (@solana_stream) December 7, 2025
However, there are more features that make Solana attractive. For example, it offers fast and low-cost transactions. This makes it easier for new or returning capital to flow into its ecosystem aggressively. Especially once macro conditions improve. This can be both from retail and institutions.
Solana already hosts a large and growing ecosystem. This includes dApps, DeFi platforms, and tokenized asset projects. xStocks ranks second on DeFiLlama’s list of tokenized stocks and ETF protocols. It’s active on Solana and Arbitrum. This gives Solana real use beyond just speculation. With a current $SOL price of $135, there’s plenty of room to grow.
Ripple ($XRP)
Ripple’s $XRP token is another one in the list of spot ETF altcoins. That’s a common dominator today. It has 5 spot ETFs live and another 3 are pending. Here’s a list. Also, for $XRP, Bitwise has the biggest spot ETF. However, $XRP ETFs already have a combined AUM of almost $1 billion. Almost 478 million $XRP are currently locked in vaults. That’s 0.47% of all available 100 billion $XRP.
$XRP was pre-mined. Here’s one of the things I don’t really like about $XRP. After 12 years, still only 60% of the max supply is in circulation. That means that the remaining 40% or 40 billion $XRP can be dumped on its users at any time. Whenever one of the Ripple founders or the Foundation needs money, they can dump a billion tokens. At the current $XRP price of $2.09, that’s an easy and quick $2 billion.
Still, despite this, $XRP could surely benefit from the M2 price increase. There are plenty of charts that back this.
$XRP is set up for a 16% move once it breaks out of this triangle. pic.twitter.com/Ym5wkactTj
— Ali (@ali_charts) December 8, 2025
Chainlink ($LINK)
Chainlink ($LINK) is one of my favorite altcoins. Last week, Grayscale launched the first ever $LINK spot ETF. On its first day of trading, it saw a $37 million inflow. So, that’s a good start for this Grayscale $LINK ETF. A Bitwise $LINK ETF should also launch soon.
Bitwise Chainlink ETF is now listed on the DTCC platform$LINK ETF IS IMMINENT 🚨 pic.twitter.com/TDXIvFEv0P
— Quinten | 048.eth (@QuintenFrancois) November 12, 2025
Chainlink has of course its CCIP. This is the cross-chain communication app. Currently; it connects well over 70 chains. But besides this, Chainlink is also big in tokenization. And RWA is where the real money is. That’s according to the biggest financial advisors, like BlackRock. When these financial big boys go full in on RWAs, there must be something to it.
Tokenization is shaping the next evolution of global markets. In @TheEconomist, Larry Fink and Rob Goldstein discuss how tokenization can modernize market infrastructure, enhancing efficiency, transparency, and access by connecting traditional and digital finance. Read more: pic.twitter.com/Hf1Q7HbxaZ
— BlackRock (@BlackRock) December 1, 2025
So, besides RWA, you can find Chainlink’s oracles about everywhere. In derivatives, DeFi, gaming, or payments. With expanding liquidity, demand for that infrastructure may surge. Institutions are also moving capital on-chain. All this benefits $LINK directly. So, keep an eye out on the $LINK price. Currently, it’s around $14. But for how much longer?
Ethereum ($ETH)
Last but not least today is Ethereum ($ETH). After Bitcoin, the $ETH spot ETFs were the second set that the SEC approved. Currently, there’s a list of well over 40 Ethereum related spot ETFs. Total AUM is $17.95 billion. Ethereum is with Bitcoin, one of the crypto spot ETFs OGs.
Ethereum saw, with the recent Fusaka upgrade, a potential game changer. Check my dedicated video on this. Ethereum became faster, cheaper, and scalable. L2’s now also need to pay real fees to Ethereum. In a nutshell, this means that Ethereum can burn more $ETH. This can even lead to Ethereum becoming deflationary again.
⚡ ETHEREUM FUSAKA UPGRADE WILL GO LIVE TODAY
Today’s upgrade could be the start of eth’s next supply crunch.
And people still don’t realize how much this changes $ETH.
It combines Osaka + Fulu + PeerDAS, but the most important part is this:
Fusaka finally fixes Ethereum’s… pic.twitter.com/mS2or7eFve
— Bull Theory (@BullTheoryio) December 3, 2025
Then there’s also Tom Lee’s Bitmine. This keeps buying $ETH for its Treasury. Straight after the Fusaka launch, it bought for another $200 million $ETH. It holds now 3.5 million $ETH. At the current $ETH price of $3.163, that’s worth around $11.2 billion. Last week, he called for a $62k $ETH price.
🔥 TOM LEE CALLS FOR $62,000 $ETH
“I think Ethereum’s going to become the future of finance, the payment rails of the future and if it gets to .25 relative to Bitcoin that’s $62,000. Ethereum at $3,000 is grossly undervalued.” pic.twitter.com/VydvLou9IE
— CryptosRus (@CryptosR_Us) December 4, 2025
What do you think, will $ETH be worth $62k anytime soon?
