Stablecoin Market Cap Hits New Peak as Broader Crypto Market Struggles
The global stablecoin market reached a record high of over $311 billion in supply this week, despite significant declines and liquidations in broader crypto markets. Tether (USDT) leads with more than $187 billion in circulation, followed by Circle’s USDC at about $74 billion. This growth in stablecoins contrasts with falling digital asset prices such as Bitcoin, which dropped nearly 30% from its October peak. In the last 24 hours, $520 million in positions were liquidated, mostly involving Bitcoin and Ethereum, signaling rising risk aversion. Analysts attribute the stablecoin surge to traders seeking safety amid altcoin losses and ongoing institutional interest in digital assets. Expansion of Trump-backed World Liberty Financial’s USD1 stablecoin on Ethereum contributed notably to the new high, while most other stablecoins saw minimal growth. Despite the record, overall stablecoin supply growth remains limited, mainly driven by isolated expansions. Market sentiment predicts only a 2% chance of the stablecoin cap exceeding $360 billion next month. Legislative developments and regulatory uncertainty continue to influence market dynamics.
