Cryptocurrency Market Surge: Are Stablecoins Spurring a Prolonged Crypto Bull Run?
Revamped Version
The crypto market could be headed for a major boom, as the stablecoin sector is witnessing massive growth. A recent report from market research platform CryptoQuant reveals that the market cap of stablecoins has reached record highs, signaling a surge in liquidity.
Galloping Crypto Liquidity
CryptoQuant's report reveals that the stablecoin market cap has grown 17% year-to-date (YTD), swelling by $33 billion to an eye-popping $228 billion. Analysts attribute this growth to the widespread adoption of stablecoins for payments and transfers, increased crypto trading activity, and improved regulatory clarity in the United States.
Tether's USDT and Circle's USD Coin (USDC) have been the primary catalysts for this growth. Since the beginning of the year, USDT has grown its market cap by 13% to $155 billion, adding $18 billion. USDC, which took a hit in March 2023 due to the Silicon Valley Bank collapse, has significantly recovered, with its market cap increasing by 39% to $61 billion in 2025 - a surge of $17 billion.
Soaring Staked Stablecoins
Furthermore, CryptoQuant found that the amount of stablecoins on centralized exchanges (CEXs) has hit sky-high levels. The value of ERC20 stablecoins on CEXs has reached approximately $50 billion, largely driven by USDC's exchange reserves, which have increased by 1.6x to approximately $8 billion in 2025.
On top of the growth in USDC, CryptoQuant also noticed that the value of yield-bearing stablecoins, which are also staked assets, has rebounded and reached levels unseen since late March. Since they hit a local low on May 23, the total value of yield-bearing stablecoins has climbed 28% to $6.9 billion, with sUSDe and sUSDs accounting for significant increases.
So buckle up, crypto enthusiasts! The ride is just getting started.
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1) The surge in liquidity in the crypto market, as indicated by the record high market cap of stablecoins, could lead to increased investing opportunities in the finance sector, particularly in trading crypto asset pairs.
2) The growth of stablecoins, such as Tether's USDT and Circle's USD Coin, coupled with the rise of staked stablecoins like sUSDe and sUSDs, demonstrate the potential role of technology in facilitating payments, transfers, and yield farming in the crypto economy, opening up new avenues for finance and financial services.
