The stablecoin market has reached a historic milestone, crossing the $300 billion mark in total capitalization. Analysts suggest that this growth shows a surge of fresh funds entering blockchain ecosystems, potentially fueling a new wave of crypto price gains.
According to recent Cointelegraph data, the overall stablecoin supply has climbed by nearly 47% since the start of the year, surpassing last year’s expansion rate. Tether’s USDT remains in the lead, holding around 58% of the market with a capitalization of $176 billion. In second place is Circle’s USDC, valued at roughly $74 billion, accounting for just under a quarter of the total supply. Ethena’s USDe follows with $14.8 billion, while MakerDAO’s DAI holds a market cap of $5 billion.
In the last month, Circle issued USDC worth $8 billion on the Solana blockchain, with $750 million minted in a single day, according to blockchain data from Lookonchain.
The record-breaking figure arrives at the beginning of October, a month that historically performs well for Bitcoin, often giving rise to the so-called “Uptober” optimism among traders.
Andrei Grachev, co-founder of Falcon Finance, noted that the current supply of stablecoins reflects active market participation rather than idle capital. “These tokens are being used actively across networks. Transfer volumes reach trillions each month, showing that the capital is circulating and serving real purposes,” he explained.
Grachev added that stablecoins are helping investors manage trades, provide liquidity, and access dollar-based assets in regions where traditional banks struggle to offer such services.
Technical analyst and trader Kyle Doops pointed out that capital in crypto rarely stays idle for long, predicting that the growing stablecoin reserves will soon find their way into the broader digital asset market.
Ricardo Santos, chief technology officer at Mansa, sees the milestone as a sign that digital assets are regaining strength. He noted that an expanding stablecoin supply often represents an influx of dollar-equivalent liquidity, which can quickly move into major cryptocurrencies such as Ethereum, Bitcoin, or other altcoins. “It’s like fresh energy entering the system,” Santos said, describing it as potential fuel for the next bull run.
Countries such as Argentina, Nigeria, and Turkey are increasingly turning to dollar-pegged tokens as everyday money, using them as a substitute for local currencies. Global companies are also paying attention; Visa, for instance, has started integrating stablecoins into its payment systems, further bridging the gap between crypto and traditional finance.
Crypto industry players like Bit Digital Inc. (NASDAQ: BTBT) look forward to the additional upward momentum expected this month as such rallies signal enhanced revenues for companies engaged in crypto mining.
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