Regardless of a $30 billion surge in stablecoin provide to new file ranges, cryptocurrency traders stay cautious as they await market stability amid US tariff fears.
The full stablecoin provide rose by greater than $30 billion within the first quarter of 2025, at the same time as the general crypto market capitalization fell 19%, in line with a brand new report by crypto intelligence platform IntoTheBlock.
“The correlation between crypto and shares climbed as macro expectations rapidly shifted from “golden period” optimism to tariff-led doom and gloom,” in line with IntoTheBlock’s quarterly report, shared with Cointelegraph.
Supply: ITB Capital Markets
The stablecoin provide’s development displays a “cautious stance, with traders holding stablecoins as a hedge, seemingly ready for market stability or higher entry factors,” in line with Juan Pellicer, senior analysis analyst at IntoTheBlock crypto intelligence platform.
Associated: Stablecoin rules needed in US before crypto tax reform, experts say
Trade leaders have predicted that the stablecoin supply may surpass $1 trillion in 2025, doubtlessly performing as a major crypto market catalyst.
“We’re in a stablecoin adoption upswell that’s more likely to enhance dramatically this 12 months,” Pakman mentioned throughout Cointelegraph’s Chainreaction stay present on X on March 27. “We may go from $225 billion stablecoins to $1 trillion simply this calendar 12 months.”
The stablecoin provide surpassed the $219 billion file excessive on March 15. Analysts see the rising stablecoin provide as a sign for the continuation of the bull cycle.
Associated: Stablecoins, tokenized assets gain as Trump tariffs loom
Stablecoin exercise soars on Ethereum
Throughout the first quarter of the 12 months, the Ethereum community noticed over $3 trillion value of stablecoin transactions on the mainnet, excluding layer-2 networks.
The variety of distinctive addresses utilizing stablecoins on Ethereum mainnet additionally surpassed the file 200,000 mark for the primary time in March.
Stablecoin day by day lively addresses on Ethereum mainnet. Supply: IntoTheBlock
Regardless of the rising blockchain exercise, the value of Ether (ETH) fell by over 45% through the first quarter of 2025, Cointelegraph Markets Pro information exhibits.
ETH/USD, 1-year chart. Supply: Cointelegraph Markets Pro information exhibits.
The decline in ETH is linked to a mixture of broader macroeconomic issues and Ethereum-specific pressures, similar to elevated competitors from networks like Solana and the rise of layer-2 protocols.
“Some analysts argue that layer-2 options dilute ETH’s worth by shifting exercise off the primary chain, however this overlooks how L2s nonetheless depend on Ethereum for safety and pay charges, contributing to its ecosystem,” Pellicer mentioned.
He added that the decline in ETH is extra seemingly because of market sentiment and uncertainty about Ethereum’s capacity to seize worth from its broader ecosystem.
Nonetheless, different analysts see a silver lining to the tariff-related investor issues. Nansen analysts predicted a 70% chance for crypto markets to bottom by June 2025 as tariff negotiations advance.
Journal: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame