Stablecoin supply surges $30B in Q1 as investors hedge against volatility

Stablecoin Supply Surges to New Record High Amid US Tariff Fears

Despite a $30 billion surge in stablecoin supply to new record levels, cryptocurrency investors remained cautious as they awaited market stability amid US tariff fears.

Stablecoin Supply Growth Reflects Cautious Stance

The total stablecoin supply rose by more than $30 billion in the first quarter of 2025, even as the overall crypto market capitalization fell 19%, according to a new report by crypto intelligence platform IntoTheBlock.

"The correlation between crypto and stocks climbed as macro expectations quickly shifted from ‘golden era’ optimism to tariff-led doom and gloom," according to IntoTheBlock’s quarterly report, shared with Cointelegraph.

Industry Leaders Predict Stablecoin Supply to Surpass $1 Trillion

Industry leaders have predicted that the stablecoin supply may surpass $1 trillion in 2025, potentially acting as a significant crypto market catalyst.

"We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year," CoinFund’s David Pakman said during Cointelegraph’s Chainreaction live show on X on March 27. "We could go from $225 billion stablecoins to $1 trillion just this calendar year."

Stablecoin Activity Soars on Ethereum

During the first quarter of the year, the Ethereum network saw over $3 trillion worth of stablecoin transactions on the mainnet, excluding layer-2 networks.

The number of unique addresses using stablecoins on Ethereum mainnet also surpassed the record 200,000 mark for the first time in March.

ETH Price Falls Amid Broader Macro Concerns

Despite the growing blockchain activity, the price of Ether (ETH) fell by over 45% during the first quarter of 2025, Cointelegraph Markets Pro data shows.

The decline in ETH is linked to a combination of broader macroeconomic concerns and Ethereum-specific pressures, such as increased competition from networks like Solana and the rise of layer-2 protocols.

Conclusion

The stablecoin supply’s growth reflects a cautious stance, with investors holding stablecoins as a hedge, likely waiting for market stability or better entry points. Industry leaders predict that the stablecoin supply may surpass $1 trillion in 2025, potentially acting as a significant crypto market catalyst. The decline in ETH is linked to macroeconomic concerns and Ethereum-specific pressures, but some analysts see a silver lining to the tariff-related investor concerns.

FAQs

Q: What is the current stablecoin supply?
A: The total stablecoin supply has surged to over $225 billion, according to a new report by crypto intelligence platform IntoTheBlock.

Q: What is the predicted growth of stablecoin supply?
A: Industry leaders have predicted that the stablecoin supply may surpass $1 trillion in 2025, potentially acting as a significant crypto market catalyst.

Q: What is the current state of the Ethereum network?
A: The Ethereum network saw over $3 trillion worth of stablecoin transactions on the mainnet, excluding layer-2 networks, during the first quarter of the year.

Q: What is the current price of Ether (ETH)?
A: The price of Ether (ETH) fell by over 45% during the first quarter of 2025, according to Cointelegraph Markets Pro data.

Q: What is driving the decline in ETH?
A: The decline in ETH is linked to a combination of broader macroeconomic concerns and Ethereum-specific pressures, such as increased competition from networks like Solana and the rise of layer-2 protocols.