Stablecoin Supply Up $30 Billion in Q1 2025
Even with a $30 billion increase in stablecoin supply reaching record highs, crypto investors remained cautious, awaiting signs of market stability amid concerns over U.S. tariffs.
According to a report from crypto intelligence platform IntoTheBlock, the total stablecoin supply rose by over $30 billion in Q1 2025, while the overall cryptocurrency market capitalization dropped by 19%.
“The correlation between crypto and stocks climbed as macro expectations quickly shifted from ‘golden era’ optimism to tariff-led doom and gloom,” stated IntoTheBlock’s quarterly report, shared with Cointelegraph.
Juan Pellicer, a senior research analyst at IntoTheBlock, noted that the growth in stablecoin supply signals a “cautious stance, with investors holding stablecoins as a hedge, likely waiting for market stability or better entry points.”
Some industry figures believe stablecoin supply could exceed $1 trillion by the end of 2025, potentially acting as a strong market catalyst.
“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” said CoinFund’s David Pakman during Cointelegraph’s Chainreaction live show on X, adding:
“We could go from $225 billion stablecoins to $1 trillion just this calendar year.”
Stablecoin supply hit a new all-time high of $219 billion on March 15. Analysts view this growth as a possible sign of the ongoing bull cycle.
On the Ethereum network alone, stablecoin transaction volume exceeded $3 trillion in Q1 2025, not counting activity on layer-2 solutions.
In March, the number of unique addresses using stablecoins on Ethereum mainnet surpassed 200,000 for the first time.
Despite the spike in blockchain activity, Ether’s price dropped over 45% in the first quarter of 2025, according to Cointelegraph Markets Pro data.
The decline has been attributed to broader macroeconomic concerns, along with Ethereum-specific challenges, such as rising competition from platforms like Solana and the increasing popularity of layer-2 networks.
Pellicer noted that while some argue layer-2 solutions weaken ETH’s value by shifting activity off the main chain, these networks still rely on Ethereum for security and contribute to its ecosystem through fee payments.
He added that the price drop is more likely tied to market sentiment and uncertainty about Ethereum’s ability to capture long-term value from its broader ecosystem.
Despite current concerns, analysts at Nansen see potential for recovery, predicting a 70% chance that crypto markets will bottom by June 2025 as tariff negotiations progress.
Sources:
https://cointelegraph.com/news/stablecoins-30-b-q1-crypto-investors-entry-point
https://app.intotheblock.com/insights/markets/indices/western
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