The number of stablecoins on major blockchains like Ethereum is rapidly increasing, reaching record levels and creating a crucial stepping stone for a new altcoin season.
The increase in stablecoin supply alongside new regulations in the United States helps bolster investor confidence and opens up expectations for an altcoin boom. Ample liquidity from stablecoins is a crucial factor driving the crypto market.
MAIN CONTENT
The supply of stablecoins on Ethereum has reached an ATH of about 130 billion USD, reflecting strong liquidity.
The GENIUS and STABLE laws in the United States enhance transparency, protect stablecoin users, and create momentum for market development.
Stablecoin liquidity could be the missing link for an altcoin explosion as BTC Dominance decreases.
Why has the supply of stablecoins increased sharply recently?
The rapid increase in stablecoin supply is mainly due to developments on major blockchains, especially Ethereum. This upward trend not only demonstrates the strength of Ethereum but also signals that capital is preparing to flow into other cryptocurrency assets.
The growth of the stablecoin market is due to both profit accumulation and preparation for adding liquidity to the altcoin market.
Coinvo analysis company, 2025
The surge originates from investor demand for capital conversion, while publicly listed companies also prioritize building projects on Ethereum, contributing to the issuance of stablecoins on this ecosystem reaching a peak of about 130 billion USD since August 2023. The flow of stablecoins into the market also often signals a profit-taking phase or preparation to participate in new altcoins.
Updated data on the Coinvo platform shows that the growth of stablecoins, especially during market booms, is closely linked to the recovery trend and expectations for the next price increase cycle of altcoins.
What factors are driving abundant stablecoin liquidity?
The explosion of stablecoins comes from multiple chains such as Ethereum, Solana, and Tron, as well as from new policies in the United States. It is forecasted that by 2030, stablecoins could account for up to 10% of total M2 with a value of nearly 3 trillion USD, opening up a scenario for remarkable growth for the entire cryptocurrency market.
The development of stablecoins, if it reaches 10% of the total M2 supply globally, will provide a sustainable foundation for DeFi activities.
Token Terminal Report, August 2025
For example, the supply of PayPal's PYUSD on Ethereum approaches 1 billion USD, while on Solana it reaches 250 million USD, according to data from Token Terminal. The largest stablecoin in the market, USD Coin (USDT), also shifts to a growth trend thanks to capital flow rotating from Bitcoin to various stablecoins. Notably, most USDT moves through the Tron ecosystem, significantly boosting cash flow in and out between exchanges.
Meanwhile, the monthly transfer volume of USDC on the Aptos blockchain set a record of 8.6 billion USD, with the number of transactions reaching 23.2 million. The U.S. remains the largest holder of stablecoins with over 347 million USD, serving the goal of building a national cryptocurrency reserve fund including Bitcoin and Ethereum.
How do the two new laws in the United States affect the stablecoin market?
The GENIUS and STABLE laws passed by the U.S. Congress have set standards for transparency, consumer protection, and increased control over the issuance and use of stablecoins. This not only reinforces the security of the domestic market but also sends positive signals for international capital flows.
Clear regulations lay the groundwork for financial innovation while better protecting the interests of stablecoin users.
U.S. Financial Committee, 2025
Legal adjustments help investors feel more secure when holding or using stablecoins as a hedge against asset volatility, supporting the transparent and safe process of DeFi transactions. This is seen as an important step for the U.S. to become the center of the global cryptocurrency and AI revolution, while attracting substantial liquidity from other countries.
As legal barriers are gradually removed, the positive psychological effect and the professionalization of stablecoin issuers will continue to boost supply and trust across the market.
Could stablecoin liquidity create a boost for the altcoin season?
The high stablecoin supply creates significant room for altcoins to rise when cash flow is ready to be released from 'defensive mode' to riskier investments. Currently, the stablecoin dominance rate is 4.22% and shows signs of fatigue; just breaking the support zone could open up a new altcoin season.
The liquidity of stablecoins is the necessary prerequisite for an altcoin season to explode. When stablecoin dominance decreases, cash flow will quickly shift to altcoins.
TradingView analyst, 2025
In addition, the Bitcoin Dominance index is also sharply decreasing from 62.5% to 59.56% in just two weeks, according to analyst Niels (X). This reflects part of the capital moving away from Bitcoin to allocate to other cryptocurrencies, especially altcoins with high growth potential in the next cycle.
The inverse relationship between altcoins and stablecoins means that when stablecoin liquidity flows out, the prices of altcoins will benefit significantly, creating a strong upward trend if technical indicators confirm the burst.
Stablecoin Supply on Ethereum (million USD) Supply on Solana (million USD) Record transfer in the month (billion USD) PYUSD (PayPal) 1,000 250 Updating USDT (Tether) — — Mostly through Tron, increasing sharply USDC — — 8.6
Frequently Asked Questions
What is a stablecoin, and why is it attracting attention?
Stablecoins are cryptocurrencies pegged to the USD or stable assets, helping reduce market volatility and increase liquidity. They are becoming increasingly important due to widespread application and their intermediary position for capital flows into altcoins.
What is the current scale of stablecoins on Ethereum?
The supply of stablecoins on Ethereum has reached a record of about 130 billion USD, reflecting a large influx of money into this ecosystem and preparing for the next growth cycles.
What U.S. regulations are impacting the stablecoin market?
The two GENIUS and STABLE laws in the United States aim to ensure transparency and protect stablecoin consumers, reducing systemic risks, thereby reinforcing market confidence and promoting development.
What makes stablecoin cash flow capable of triggering an altcoin season?
The accumulation of stablecoin liquidity creates a large capital source; when shifting through altcoins, it can easily push many projects’ prices up reasonably according to market trends.
What role does PayPal's PYUSD play in the growth of stablecoins?
PYUSD on Ethereum is approaching the 1 billion USD mark, contributing to the diversification of the stablecoin ecosystem and increasing the connection between traditional finance and blockchain.
How is USD Coin (USDC) developing?
USDC set a record for monthly transfers on Aptos with 8.6 billion USD, with the number of transactions reaching 23.2 million, demonstrating its key role in DeFi network liquidity.
What impact does the decrease in Bitcoin Dominance have on altcoins?
When BTC Dominance decreases, capital often shifts to altcoins, laying the foundation for a strong altcoin growth season in the next market cycles.
Source: https://tintucbitcoin.com/stablecoin-ethereum-130-ty-usd-khuay-dong-altcoin/
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