**Crypto Market Update: Stablecoin Surge Amid Caution**

In Q1 2025, stablecoin supply soared by $30 billion, reaching new highs, despite a 19% dip in overall crypto market cap, reports IntoTheBlock. This surge reflects investor caution, with many holding stablecoins as a hedge amid US tariff concerns.

Ethereum saw over $3 trillion in stablecoin transactions, yet ETH prices dropped 45%, influenced by macroeconomic worries and competition from other networks. Analysts suggest stablecoins could hit $1 trillion this year, potentially sparking a market rally. Meanwhile, tariff negotiations may stabilize markets by mid-year.