Could They Fuel a Sustained Crypto Rally?

Market consultants have constantly emphasised that cryptocurrencies require growing liquidity to maintain a chronic rally. Because it stands, the crypto market might be getting ready to an explosion as a result of type of progress being recorded within the stablecoin sector.

The newest weekly report from the market analysis platform CryptoQuant has revealed that the market capitalization of stablecoins is increasing and has reached unprecedented highs. This means that liquidity is rising within the crypto market, and there may be extra capital ready to be deployed.

Market Sees Rise in Liquidity

In response to CryptoQuant, the stablecoin market cap has grown 17% year-to-date (YTD), growing by $33 billion to a file $228 billion. Analysts say this progress has been supported by the broader adoption of stablecoins for funds and transfers, elevated crypto buying and selling exercise, and improved regulatory readability in the USA, because of the Trump administration.

Tether’s USDT and Circle’s USD Coin (USDC) have been driving the expansion within the stablecoin market cap. Because the starting of the 12 months, USDT has grown its market cap by 13% to $155 billion, including $18 billion.

Inside the similar timeframe, USDC has considerably recovered from the hit it suffered in March 2023, following the collapse of Silicon Valley Financial institution (SVB) in the course of the U.S. banking disaster. On the time, USDC depegged from $1, and its market cap fell as little as $24 billion earlier than the top of that 12 months. Thus far in 2025, the market cap of USDC has elevated by 39% to $61 billion, representing a rise of $17 billion.

Staked Stablecoins File Progress

Moreover, CryptoQuant discovered that the quantity of stablecoins on centralized exchanges (CEXs) has rallied to record-high ranges. The worth of ERC20 stablecoins on CEXs has reached roughly $50 billion. Analysts attributed most of this progress to USDC, which has seen its alternate reserves improve by 1.6x to roughly $8 billion up to now in 2025.

In addition to the expansion seen in USDC, CryptoQuant additionally famous that the worth of yield-bearing stablecoins, that are additionally staked property, has recovered and reached a stage not seen since late March.

Since they plunged to an area low on Could 23, the whole worth of yield-bearing stablecoins has risen 28% to $6.9 billion.

“This restoration was pushed by sUSDe, which elevated by $1.23 billion, and sUSDs, which gained 35%—or $0.7 billion—in market cap over the identical interval,” CryptoQuant analysts added.