Stablecoins continue to grow despite the recent crypto market crash, signaling that the cycle isn’t over yet.
Matrixport reports $304B in total stablecoin value, with $74B in new inflows this year from Tether and Circle.
Binance stablecoin reserves hit a record $42B, up $10B since August, showing strong investor participation.
Stablecoins are quietly gaining ground and attracting fresh liquidity in the ecosystem. Despite the recent market turbulence, these dollar-pegged tokens are seeing growing interest which shows that investors are finding new ways to navigate volatility
Stablecoin Liquidity Surges Despite Market Stress
A report from Matrixport shows that even after the crypto market crash, stablecoins inflows are still pouring in. “Stablecoin inflows remain one of the clearest signs that this is neither the end of crypto nor the end of this cycle,” it said.
Tether has added $42 billion this year, and Circle another $32 billion, with $74 billion in fresh inflows keeping the ecosystem alive and growing, and liquidity flowing in through more sophisticated channels.
Cryptoquant analysts also note that stablecoins are flowing back into exchanges. $3.2 billion was added over the past month, which was the strongest liquidity boost in weeks. Binance led the influx, gaining $1.42 billion, followed by Bybit and OKX, while other exchanges saw net outflows.
Binance stablecoin reserves reached a record $42 billion, rising by $10 billion since August.
The surge in Binance’s stablecoin reserves points to strong investor participation and steady capital flow into the market. While a small part of this might be traders moving funds back into stablecoins, most of it points to real trading activity and growing liquidity.
Stablecoin Market Grows $1.86B This Week
The total stablecoin market cap is currently over $315 billion.
According to data from Defilama, the stablecoin market climbed by $1.86 billion this week. Most of this growth came from Solana, whose stablecoin supply jumped $1.13 billion in just 7 days, highlighting the ongoing demand and liquidity in the crypto ecosystem.
Notably, Treasury Secretary Scott Bessent has predicted a $3 trillion stablecoin market. Although the figure is still far from reach, the surge shows how quickly the digital landscape is evolving. The trend toward de-dollarization is also picking up pace, as stablecoins are increasingly being used as onramps to higher-yield assets and as hedges against weakening fiat currencies.
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Citi Raises Stablecoin Issuance Forecast to $1.9T
Meanwhile, Citi has also raised its stablecoin issuance forecast by about 20%, now projecting $1.9 trillion by 2030, up from the previous $1.6 trillion. The bank cites rapid market growth over the past six months and a surge of new project announcements, both in the U.S. and globally, as key drivers behind the upward revision.
Citi noted that the rise of stablecoins, tokenized deposits, and deposit tokens is reshaping the financial landscape, similar to the early days of the dotcom boom. While some critics worry that banks could be sidelined, Citi believes that crypto is helping to reimagine the system.
Bernstein analysts also expect that the total stablecoin market will reach around $670 billion by 2027, fueled mainly by the growth of crypto capital markets.
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FAQs
Stablecoins are cryptocurrencies pegged to stable assets like the U.S. dollar. They are gaining popularity as a safe haven for investors to navigate crypto volatility and as an on-ramp to higher-yield digital assets.
Major institutions like Citi project the stablecoin market could reach $1.9 trillion by 2030. This growth is driven by their increasing use in crypto capital markets and as a pillar of the evolving digital financial landscape.
Stablecoins are designed to be less volatile than other cryptocurrencies. Their growing market cap and influx into major exchanges indicate they are widely used for trading and as a hedge against weaker fiat currencies.
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