Key Insights:
- Stablecoin market cap surpasses ETH, hitting $235.7B
- Q1 2025 sees a $20.17B stablecoin supply surge
- Whales hold $1B USDC, hinting at a major market shift
The stablecoin market has surpassed Ethereum by reaching $235.7B in value. Meanwhile, the on-chain waiting liquidity has reached $1B. Investors are monitoring the market to determine if the funds will flow into crypto and trigger a price increase, or if a shake-up coming.
Meanwhile, ETH holders experience frustration as Ethereum’s price stays below $1,900 while failing to surpass important resistance points. With the growing influence of stablecoins on the crypto market, it has reached a point where it cannot be overlooked.
Stablecoin Supply Surges by $20.17 Billion Since January
The total stablecoin supply has expanded by $20.17 billion (+10.9%) since January 1, 2025 to surpass $205 billion. For comparison, the previous peak in December 2024 reached $187 billion, but the supply decreased to $185 billion during the last two weeks of the year before early January.
The recent surge in stablecoin supply indicates traders are maintaining their capital outside the market while waiting to invest it. An increase in stablecoin supply creates additional market liquidity that drives new buying activity across the cryptocurrency sector.
Glassnode data shows stablecoin supply increased by $3.33 billion (+1.65%) during the last 30 days, while September 2024 levels of $2.37 billion (+1.2%) maintained their stability. Investors seem to be strategically placing their funds into position while they wait for optimal market entry conditions.
Quarterly Growth Outpaces Previous Cycles
Stablecoin expansion has shown rapid growth since the last two quarters surpassed the total growth of mid-2024. The stablecoin market experienced its largest annual growth in Q4 2024 when it expanded by $23.86 billion (+14.7%).
Moreover, the stablecoin supply has demonstrated an upward trend in Q1 2025 because it has already increased by $20.17 billion (+10.9%) before even the quarter ends. The market’s fast expansion demonstrates growing investor demand for stable assets, that serve as protective investments during times of market instability.
In contrast, the combined stablecoin growth during Q2 and Q3 2024 amounted to $18.6 billion while the total increase reached +10.2%. During this period, the market entered a period of stability where capital movement occurred at a more controlled rate.
The gradual slower pace of expansion indicates traders chose to move their funds into alternative investments or adopted a defensive strategy because of regulatory complexities and economic conditions.
Whales Are Preparing for a Market Move
Further supporting the idea of upcoming market activity, the Ethereum network contains $1 billion worth of USDC, which Whale Alert reports is available for immediate deployment. The substantial amount of funds represents a significant opportunity for investors to purchase undervalued assets or initiate new trading positions.
Historically, stablecoin movements from whales in the past have consistently indicated upcoming major shifts in the market. The substantial USDC reserve indicates institutional investors are preparing to enter the crypto market, although it remains unclear which assets they will choose.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
