Stablecoin Market Surges Past $200B, Signaling Potential Crypto Price Upswing

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Stablecoins Are Blowing Up Like My Last Relationship! 💔💰

What to know:

  • The stablecoin market cap has hit a record of over $200 billion. (That’s more than my student loans!)
  • Stablecoins have grown by almost $40 billion since President Trump won the U.S. election. (Coincidence? I think not!)
  • The growth in stablecoins is seen as a positive signal for the wider crypto market. (Like a thumbs up from your mom!)

The market capitalization of stablecoins just pierced $200 billion, reaching a record height in a sign the crypto market may be poised for further growth, according to CryptoQuant. (And no, this isn’t a new reality show on Bravo.)

Stablecoins are digital tokens whose value is tied to another asset, typically the U.S. dollar, to provide, as the name suggests, a stable price. They are used by traders to maintain the value of their investments as they switch between assets. (Kind of like how I switch between diets every Monday.)

According to CryptoQuant data, the stablecoin market has grown by $37 billion since early November, when President Donald Trump won the U.S. election. (So, basically, Trump is the fairy godmother of stablecoins?!)

“The next leg up for bitcoin and crypto prices could be around the corner as stablecoin’s liquidity impulse starts to expand again,” CryptoQuant wrote in a report. (Sounds like a fancy way of saying, “Get ready to party!”)

Tether’s USDT remains the dominant stablecoin leader, with $139 billion in market cap, having grown 15% since November. (That’s like the overachiever in class who always gets the gold star.) Circle’s USDC is next, with $52.5 billion having grown 48% over the same period, according to CryptoQuant data. (Circle is basically the cool kid who just got a glow-up.)

USDT’s liquidity change on a 30-day basis is now slightly positive after contracting 2% at the start of the year. Meanwhile, USDC’s liquidity change on a 30-day basis is up 20%, the fastest pace in a year. (It’s like they’re both on a financial treadmill, and USDC just found the turbo button!)

Bitcoin (BTC), in comparison, has climbed over 50%, and the total crypto market is now $3.5 trillion from $2.2 trillion, according to TradingView metric, Total. (That’s a lot of zeros! I can barely count to ten without losing track.)

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2025-01-31 13:27