The total market capitalization of stablecoins has surpassed $200 billion, reaching an all-time high of $204 billion, according to a report from CryptoQuant. This marks a significant increase of $37 billion since the U.S. Presidential election on Nov. 5, 2024. The growth in stablecoin liquidity is attributed to the rise of Tether’s USDT, though Circle’s USDC has also gained momentum. CryptoQuant analysts note that liquidity conditions, measured by the total value of stablecoins in circulation, have increased since the election, historically correlating with sustained growth in cryptocurrency markets.
Stablecoin transfer volume has also seen a surge. A report from CEX.io revealed that in 2024, stablecoin transfer volume surpassed the combined transaction volume of Visa and Mastercard by over 7.68%. Stablecoins transferred a total of $27.6 trillion in 2024, surpassing the $23.8 trillion volume of the two payment giants.
However, much of this stablecoin volume was driven by bot activity. According to the CEX.io report, bots generated 70% of stablecoin transactions in 2024. Bot transactions accounted for 98% of the stablecoin transfer volume on the Solana and Base networks. Additionally, stablecoins that offer yield-bearing features now make up over 3% of the stablecoin market, contributing to a significant increase in the market capitalization of tokenized treasuries, which surged by 414%.
The growing use of stablecoins, particularly USDT, has led to an increase in stablecoin deposits on centralized exchanges. USDT deposits have risen by 41%, from $30.5 billion on Nov. 4, 2024, to $43 billion today. These deposits are seen as an important source of liquidity for trading on exchanges, and their expansion is generally associated with higher cryptocurrency prices.
The combination of rising stablecoin market caps, increasing transfer volumes, and growing liquidity has led many in the cryptocurrency space to believe that stablecoins will play a key role in the next market rally. Historically, higher liquidity in the market has been linked to price increases, and with stablecoin liquidity continuing to rise, it could signal a strong upward trend for cryptocurrencies in the near future. As the total value of stablecoins continues to grow, it may drive the next phase of the cryptocurrency market’s expansion.
