Stablecoin Market Expands by $16.97B in 2025, Suggesting Increased Liquidity in the Crypto Market

The stablecoin market has grown in valuation recently, and this could be bullish for Bitcoin and other risk assets.

The stablecoin market has seen significant growth in 2025, adding about $16.97 billion since the start of the year, according to blockchain analytics platform Glassnode.

The firm revealed that the total stablecoin circulating supply has risen from about $194.2 billion to around $211.2 billion this year. Notably, this growth suggests increasing liquidity in the crypto market.

However, Glassnode noted that stablecoin issuance has not been uniform throughout the year. In November and December 2024, the market grew by roughly $450 million every day.

Nonetheless, the pace slowed in January 2025, averaging $400 million per day. This month, growth picked up again, with an average daily increase of $541 million.

Mid-January saw a notable spike, as the seven-day average stablecoin issuance moved above the 30-day simple moving average (SMA). This indicated renewed short-term demand, signaling that capital is flowing back into crypto.

For context, several large stablecoin issuances have occurred over the past week alone. On Feb. 4, blockchain tracking platform Whale Alert reported that Tether minted 1 billion USDT in a single transaction.

💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,000,415,000 USD) minted at Tether Treasuryhttps://t.co/X3KOENIS50

— Whale Alert (@whale_alert) February 4, 2025

Additionally, Circle, the issuer of USDC, minted 750 million USDC across three separate instances on Feb. 4, 6, and 7, with each issuance totaling 250 million USDC. Further, in total, Circle has created 1.057 billion USDC in February alone. Paxos, the issuer of PYUSD, also added 65 million PYUSD to the supply this month.

USDT still leads the stablecoin market despite MiCA challenges

Notably, the stablecoin market capitalization has now grown to $230 billion, according to CoinMarketCap. Tether continues to lead, with a market cap of $141.9 billion, despite facing regulatory issues under the European Union’s MiCA framework, which has led to several exchange delistings.

USDC follows with a market capitalization of $56.2 billion. Ethena USDe (USDe) ranks third with $6 billion, while Dai (DAI) holds the fourth position with $5.3 billion.

Stablecoin growth can be bullish for Bitcoin, crypto: Here’s why

The increasing stablecoin supply is often a precursor to higher buying pressure in the crypto market. When investors hold more stablecoins, they usually position themselves to buy risk assets, which can drive prices higher.

Meanwhile, Santiment recently reported that crypto traders had shifted their attention toward Bitcoin and Layer-1 blockchains, such as Cardano, Toncoin, Solana, and Ethereum.

😀 The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano. Collectively, the top Layer 1 assets are getting 44.2% of discussions among specific coins. Meanwhile, top meme coins like Dogecoin, Shiba… pic.twitter.com/PpBjD9vSi4

— Santiment (@santimentfeed) February 10, 2025

These assets collectively account for 44.2% of discussions in the crypto community. Meanwhile, interest in meme coins like Dogecoin, Shiba Inu, and Pepe has declined.

According to Santiment, this change leads to a more stable market environment. Meme coins typically thrive on speculative hype, but when the focus moves to Bitcoin and Layer 1 networks, it suggests a more mature and sustainable growth phase.

Historically, excessive speculation in meme coins has preceded market corrections. In contrast, rising interest in core blockchain infrastructure often points to a stronger foundation for long-term growth.