Stablecoin market capitalization has surpassed $280 billion, hitting a new all-time high

Stablecoin market capitalization has surpassed $280 billion, hitting a new all-time high

Stablecoin market capitalization has surpassed $280 billion, marking a new all-time high. According to the latest analysis from CryptoQuant, weekly expansions in stablecoin market capitalization have dropped to around $1.1 billion, a significant slowdown from the $4–8 billion weekly inflows observed in late 2024 [1]. Despite this moderation, the total value of stablecoin holdings on exchanges reached a new all-time high of $68 billion on August 22, surpassing the previous record set in February 2022 [1].

Tether’s USDT, the dominant stablecoin, has seen its 60-day growth moderate, holding at roughly $10 billion compared to peaks above $21 billion earlier in the cycle [1]. This indicates a cooling trend in capital inflows but does not suggest outflows or contraction. Instead, it shows a broader moderation in crypto liquidity, with both aggregate stablecoin market cap growth and USDT issuance slipping slightly below their moving-average trends [1].

The stablecoin market is gaining attention from industry leaders, regulators, and Wall Street giants. New regulations, growing institutional interest, and increasing real-world utility are driving its growth. Experts predict significant growth, with projections ranging from $1.2 trillion by 2028 to $2.8 trillion by 2028 [3]. Ripple, for instance, is leading the push in the stablecoin market, partnering with SBI VC Trade to bring RLUSD to the Japanese market [3].

Coinbase has also expanded its stablecoin offerings, listing USD-1, a stablecoin pegged to the U.S. dollar and built on the Ethereum blockchain. This move aligns with Coinbase’s strategy to create safer and more regulated resources for digital dollars [2]. The listing of USD-1 comes four months after its mainnet debut, and it has already amassed a market capitalization of $2.3 billion, signaling strong demand and institutional interest [2].

The growth of stablecoins is pushing financial institutions to rethink how they process digital payments. Ethereum, described as a “Wall Street token” by Jan van Eck, CEO of investment management firm VanEck, is gaining traction as a go-to blockchain for banks [4]. The growth of stablecoins is expected to lead to a surge in demand for U.S. Treasuries, which back stablecoins [3].

In conclusion, the stablecoin market is experiencing a period of consolidation rather than sustained parabolic rallies. While the market may not enjoy the same acceleration as previous bullish phases, the liquidity backdrop remains supportive, suggesting stability and selective surges. For investors, this dynamic suggests that caution and patience may be required as markets adjust to a more measured pace of growth.

References:
[1] https://finance.yahoo.com/news/stablecoin-exchange-reserves-hit-record-183747601.html
[2] https://cryptofrontnews.com/coinbase-lists-usd-1-stablecoin-just-four/
[3] https://coinpedia.org/news/ripple-exec-reveals-2-key-drivers-of-stablecoin-market-growth/
[4] https://www.cointribune.com/en/van-eck-calls-ethereum-the-wall-street-token-amid-stablecoin-growth/