Stablecoin sector capitalization updates the record above $220 billion

CryptoQuant expects a new stage of growth of the crypto market in this regard

31.01.2025 - 14:15

3 min

What’s new? The market capitalization of stablecoins has updated its record above $223,5 billion, this may be a sign that the crypto market is ready for further growth, analysts at blockchain platform CryptoQuant write in a new report. According to their data, the stablecoin market has grown by $37 billion since early November, when Donald Trump won the US presidential election.

Source: X.com

What else is known?

“The next leg up for bitcoin and crypto prices could be around the corner as stablecoin’s liquidity impulse starts to expand again,” CryptoQuant said in the report.

Tether’s USDT remains the dominant stablecoin with a capitalization of $139,43 billion, adding 15% since November. USDC from Circle and Coinbase is traditionally in second place with a capitalization of over $53,1 billion and an increase of 48% over the same period. At the same time, USDC liquidity grew 20% in 30 days, which was the best result for the year.

Tether will deploy USDT on the Bitcoin and Lightning Networks

The Taproot Assets network will be used for the integration

Stablecoins are digital tokens whose value is pegged to another asset, typically the US dollar, or other fiat currencies and precious metals. They are designed to provide a stable price in the crypto market, which is characterized by high volatility. They are most often used by traders to maintain the value of their investments when moving from one digital asset to another.

Earlier, Bitwise Investment Director Matt Hoeugan said that Trump’s recent executive order recognizing cryptocurrency as a national priority could disrupt bitcoin’s traditional four-year cycle. Thus, pullbacks will now be shorter and weaker.

He noted that the crypto market has matured and is attracting more institutional players. The company believes that BTC will reach $200 000 by the end of 2025 even if the US does not create a national bitcoin reserve.

Arthur Hayes, founder and former head of the BitMEX exchange, predicted a slight correction in BTC. In his opinion, the cryptocurrency should drop to $70 000 to then rise to $250 000 by the end of the year.

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