While most of the crypto market is still struggling to recover from the weekend’s major downturn, stablecoins are quietly reaching new highs.
Data from DefiLlama shows that as of October 13, the total amount of stablecoins in circulation has grown to $304 billion, setting an all-time record. That’s roughly 1% higher than last week and almost a 50% jump since the beginning of the year, when supply hovered at $200 billion.
Tether (USDT) remains the market leader, holding more than half of all stablecoins in circulation with approximately $180 billion. USDC comes next at $75 billion, while Ethena’s USDe has climbed to $12 billion, earning it third place among stablecoins by total value.
The expansion comes during a period of intense volatility. On October 10, cryptos saw one of the steepest single-day losses in recent memory, wiping out more than $500 billion in market value. The sell-off followed an announcement by President Trump, who revealed plans to impose a 100% tariff on all imports from China.
The news triggered panic selling and massive liquidations totaling roughly $19 billion across major trading platforms. Ether slid below $3,700, while Bitcoin briefly dipped under $115,000 before stabilizing.
Investors shifted their capital into stablecoins like USDC and USDT. This move suggests investors are not abandoning the crypto space entirely but are instead parking their capital in dollar-pegged tokens until the market regains direction and confidence.
One of the standout developments in 2025 has been the rapid growth of Ethena’s USDe. However, the same market crash also exposed some weaknesses in centralized trading systems. During the panic, USDe’s price plunged to $0.65 on the Binance crypto exchange before regaining its peg.
According to Ethena’s team, the sharp drop resulted from a liquidity shortage caused by the exchange’s internal pricing mechanics rather than an issue with USDe’s structure. The exchange’s thin order books at the time led to forced liquidations, exacerbating the fall.
In response, Binance announced it would reimburse $283 million to the affected users on its margin, futures, and loan services. The company also stated that it plans to enhance its pricing oracles and implement new safeguards to prevent similar events.
Although market confidence returned quickly, the event underscored how technical failures at exchanges can magnify stress during periods of high volatility. In light of this, there is growing support for real-time collateral verification and decentralized oracles, tools that could provide early warnings of market stress and help maintain stability in the digital asset ecosystem.
The resilience of systems at exchanges would further boost trust in crypto and by extension bolster the outlook for all industry players, including established firms like Canaan Inc. (NASDAQ: CAN).
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