USDT Leads as Stablecoins Market Cap Crosses $204 Billion Milestone

Since November, the stablecoin market has grown by almost $40 billion. As a result, the total market valuations of broader stablecoins have climbed beyond $200 billion, according to data shared by OKX Ventures today.

Stablecoin Market Surges Past $200B—A Bullish Signal for Crypto?

The stablecoin market has grown by nearly $40B since November, crossing the $200B milestone. This expansion suggests increasing liquidity, a crucial driver for potential crypto price appreciation.

🔹 USDT remains… pic.twitter.com/czZGwfyQky

— OKX Ventures (@OKX_Ventures) January 31, 2025

Stablecoins hit a $204 billion market cap

As stated in the data, stablecoin liquidity has experienced an unparalleled increase, suggesting robust user demand and expanded capital influxes into the cryptocurrency market.

The data showed the total market cap of stablecoins has surged by $40 billion since November 2024. Consequently, the entire market cap of these assets has crossed $204 billion. This reflects a massive $40 billion rise since November 4, 2024, when Trump was elected as the US President.

Most growth was contributed by major stablecoins, Tether’s USDT and Circle’s USDC. Based on the data, USDC’s market cap has increased by 15% ($19 billion) since November to climb to an overall $139 billion. Meanwhile, USDC has witnessed a more tremendous rise, surging by 48% ($17 billion) over the same period to reach $52.5 billion.

The data pointed out that major stablecoins, especially USDT and USDC, function as crucial liquidity sources in the digital asset market. These stablecoins enable investment and trading through seamless fiat money accessibility without complexity or friction.

Impact of stablecoin liquidity on crypto prices

Also, the data indicated that the influx of stablecoins into centralized exchanges (CEXs) has significantly strengthened investors’ optimism about Bitcoin.

Since November, the overall value of USDT on CEXs has increased to $43 billion from $30.5 billion, representing a 41% surge. Normally, increasing stablecoin inflows into exchanges signals expanded purchasing capacity, laying the foundation for Bitcoin prices to continue rising.

Historically, this increase in stablecoins inflows to trading platforms happens before Bitcoin and the wider cryptocurrency market see higher price trajectories.

As per the data, the growth of stablecoins inflows could signal a new wave of uptrend price movements in the digital asset market. This could fuel Bitcoin to surge by over 50% and the market cap of wider crypto markets to increase to $3.5 trillion from the current $2.2 trillion. In other words, the rebound of stablecoin liquidity could boost greater price rises of cryptocurrencies.

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