In brief
- Stablecoin supply hit a new all-time high above $311 billion this week, led by USDT and USDC, even as Bitcoin slid below $90K.
- Crypto volatility spiked, with $592.4M in liquidations in 24 hours, including $230M in Ethereum and $204M in Bitcoin, signaling a rise in risk aversion.
- Myriad Markets users place a 97.5% chance on the stablecoin market cap remaining below $360B in January.
The global stablecoin market surged to a new all-time high this week, surpassing $311 billion in total supply, even as broader crypto markets struggle under sharp price declines and heavy liquidations.
According to data from DeFiLlama, the stablecoin market cap peaked at $311.332 billion on January 18, and currently sits at $309.066 billion.
Tether’s USDT remains the dominant issuer with more than $187 billion in circulation, followed by Circle’s USDC at approximately $74 billion, per CoinGecko data.
“The stablecoin market cap keeps growing, even as the total market cap of the digital asset market is struggling,” Nic Puckrin, digital asset analyst and co-founder of Coin Bureau, told Decrypt.
The new stablecoin peak comes amid market turbulence, with Bitcoin trading below $90,000, down nearly 30% from its October peak, per CoinGecko data.
The past 24 hours saw $520 million in total liquidations split between long positions at $227 million and short positions at $294 million, according to CoinGlass data.
Ethereum accounted for over $189 million in liquidations, while Bitcoin saw more than $192 million, pointing to heightened risk aversion among traders.
The data show that the “altcoin rout” is forcing crypto traders into stablecoins as a volatility buffer, Puckrin added, while “TradFi’s push into digital assets is continuing unabated” despite weakness in the broader crypto market.
“At a time when trust in the US and the greenback is diminishing globally, stablecoins are strategically and systemically important,” he said, noting that he expects their market cap to “continue to balloon this year and beyond, regardless of the sentiment in the wider crypto market.”
On prediction market Myriad, owned by Decrypt’s parent company Dastan, users place just a 14% chance on an “alt season” taking place in the first quarter of 2026.
Crypto seeks CLARITY
President Donald Trump said Wednesday at the World Economic Forum in Davos that he hopes to sign the crypto market structure bill “very soon,” potentially resolving last week’s legislative turbulence when Coinbase abruptly withdrew support for the CLARITY Act.
The exchange’s reversal stemmed from concerns over provisions that could limit its ability to offer stablecoin yield products, forcing the Senate Banking Committee to pull a crucial vote.
Meanwhile, Yaroslav Patsira, Fractional Director at CEX.IO, told Decrypt that the stablecoin market’s high was primarily driven by the expansion of Trump-backed World Liberty Financial‘s USD1 stablecoin, with its supply on Ethereum growing from $660 million to nearly $1.3 billion over the past month, per DeFiLlama data.
Most other major stablecoins saw “only minimal changes in supply,” with Q4 growth of just $8.1 billion, “the weakest quarterly expansion since Q4 2023,” as a “risk-off market environment” and declining crypto-backed stablecoin supply slowed issuance.
However, he noted that “the latest all-time high does not appear particularly significant, as overall stablecoin supply continues to move largely sideways, with localized expansions accounting for most of the changes.”
Myriad users see a 98% likelihood that the stablecoin market cap won’t top $360 billion next month.
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