Stablecoin Reserves on Exchanges Hit $68B While Supply Growth Slows

Stablecoin reserves on centralized exchanges have climbed to a brand new report of $68 billion, at the same time as provide progress has slowed. The most recent milestone, recorded on August 22, was pushed by $53 billion in USDT holdings and $13 billion in USDC balances.

Based on a report by the on-chain aggregator CryptoQuant, this marks a transparent break from earlier data. The brand new whole surpasses the earlier peak of $59 billion set in February 2022, when BUSD had a bigger function. Reserves have since greater than doubled from their October 2023 low, boosted by a $28 billion enhance after Donald Trump’s election victory.

Cooling Momentum in Stablecoin Liquidity

Rising stablecoin balances are sometimes seen as a sign of robust market liquidity. They supply the funds obligatory for asset purchases, making them a key consider supporting value exercise throughout digital property.

Nonetheless, regardless of report ranges on exchanges, the broader expansion of stablecoin provide has proven indicators of slowing. Since November 2024, internet additions have softened, with solely $1.1 billion in latest inflows in comparison with $4–$8 billion will increase in earlier months.

CryptoQuant notes that this weaker provide growth reduces the power of liquidity situations for crypto markets. In earlier cycles, fast stablecoin growth aligned with notable value rallies, particularly in Bitcoin and different main property.

Consequently, durations of robust inflows usually mirror new capital getting into the ecosystem. The present slowdown means that much less recent cash is transferring into stablecoins, which can restrict the tempo of additional market advances.

Tether’s Progress Slows Regardless of Market Dominance

Tether continues to dominate change reserves, however its tempo of progress has eased in 2025. During the last 60 days, USDT provide expanded by $10 billion. That is lower than half of the $21 billion enhance recorded on the finish of 2024.

The slowdown is mirrored within the newest figures, which additionally got here in barely under the 30-day transferring common, signaling a deceleration in capital inflows. CryptoQuant interprets this as decreased momentum in one of many market’s largest liquidity sources.

Even so, the report concludes that liquidity stays supportive, although not as robust as in late 2024. Wanting forward, if provide growth continues to chill, markets might transfer towards consolidation. Renewed issuance, nevertheless, may nonetheless set off one other spherical of bullish momentum.