Stablecoins Approach $250 Billion, Anchoring 8% Of Global Crypto

Source Newsbtc

Based on reports, stablecoin issuance has kept climbing for the past 90 days, with billions of dollars flowing in each week. Investors appear to be waiting for a clear sign before moving capital.

Right now, USDT holds over 66% of that market, while USDC and DAI share the rest. In total, stablecoins account for about $250 billion, or almost 8% of all crypto assets.

Stablecoin Supply Hitting New Highs

Demand for a trusted dollar peg is driving this growth. Tether leads by a wide margin because many traders trust its stability. Stablecoin reserves have swelled, even as other segments stay quiet. This points to plenty of cash on the sidelines.

Bitcoin And Stablecoin Dominance

Bitcoin and stablecoins together make up roughly 74% of the total crypto market. That’s a big number. In past cycles, once those balances peak, money often moves into smaller tokens. Right now, Bitcoin’s price is steadying after recent swings. Stablecoin balances keep growing.

Altcoin Season On The Horizon

Based on forecasts from analyst Joao Wedson, altcoins could see a lift in Q3 2025. He points to the huge amount of stablecoin liquidity and persistent doubt among retail and big players. That stage of doubt has come before in other cycles, and it usually marks a turning point. When confidence returns, altcoins tend to surge.

Investors Poised On The Sidelines

Many holders seem ready to hit buy. They’re holding onto stablecoins until charts, on-chain data or macro news clear up. A boost in stablecoin flows to exchanges could be one early hint that rotation is starting. Large moves by whale wallets into low-cap tokens may follow.

In recent weeks, inflows of stablecoins into trading platforms have ticked higher. That’s a key signal to watch. If weekly inflows rise sharply—say above $5 billion—it may show serious appetite building. Past cycles saw similar spikes just before altcoin rallies began.

Another one to monitor is decentralized finance platform volume. When stablecoins move from wallets to lending or liquidity pools, it usually indicates that traders are looking for return and preparing to swap to other tokens.

Related Reading: Bitcoin Paces $15 Billion YTD Influx Amid 10-Week Fund Flow Streak

Market observers will also be monitoring Bitcoin’s consolidation range closely. If it remains above recent lows for a few weeks, that would give confidence a boost everywhere. Then we could see smaller cryptocurrencies move higher on new liquidity.

Based on these signals, it looks like we’re in a waiting game. Stablecoin supplies are at record levels, Bitcoin is settling, and altcoin sentiment remains low. When all that lines up just right, funds are likely to rotate. Then the altcoin sector could see new life.

Featured image from Imagen, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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