Record-breaking stablecoin liquidity surges to a monumental $220 billion, according to recent reports.
CryptoQuant Weekly Report Shows Stablecoin Liquidity at an All-Time High
Get ready, crypto enthusiasts! The latest CryptoQuant Weekly Report has some exciting news - stablecoin liquidity has smashed records, reaching an astounding $220 billion. This surge is thanks to the growing market caps of Tether (USDT) and USD Coin (USDC), propelling capital influx into the crypto sector.
Bullish Indications for Bitcoin (BTC)
According to the April 30 report, USDT's market cap escalated by $2.5 billion, while USDC saw a $1.2 billion increase in the past week. Combined, their market caps saw a stunning $3.7 billion rise, marking the strongest weekly growth in stablecoin supply since February 9.
Over the last 30 days, this growth has soared even higher. USDT has added $5.3 billion, while USDC has skyrocketed by $6 billion in the same period. Both stablecoins are surging above their 30-day moving averages.
Traditionally, this pattern has been a telling sign of increased liquidity and stronger performance in the broader crypto market, particularly for Bitcoin (BTC).
Market sentiment has improved considerably with these liquidity changes. The Bitcoin Bull Score Index, a metric that tracks investor sentiment and market strength, has climbed from 20 last week to 50 this week, now placing the market in a neutral position. The increase in the score is a testament to the impact of rising stablecoin liquidity on Bitcoin's recent move above key on-chain resistance levels. However, the index remains below 60, the level typically associated with sustained price rallies.
Bitcoin has made a significant comeback over the past three weeks, recovering more than 25% from its April 9 low of nearly $74,000 to over $96,500 in early May.
Meanwhile, Bitcoin advocate Robert Breedlove recently pointed to the average miner cost of production as a potential sign that the asset could be on the verge of a bull run. He noted that this metric, often seen as the market's break-even line, has historically signaled cycle bottoms and is once again suggesting a possible price floor.
USDT Underperforms, USDC Hits Exchange High
Despite the record-breaking levels, USDT liquidity on exchanges has yet to fully recover. At present, the total amount of USDT held on exchanges stands at $38 billion, which is 12% lower than its February 21 peak of $43 billion.
On the other hand, USDC balances on exchanges have reached $6.5 billion, their peak since March 2023. Exchange-based stablecoin reserves play a crucial role in supporting price activity in digital assets, as they can be used swiftly for trading and investment purposes.
Bonus Insights:
- Global Stablecoin Supply Surge: The global stablecoin supply surged 14% in 2025, reaching a market cap of ~$180B as of May 4, with USDT dominating at $95B (up from $83B in January)[2]. Exchange-held stablecoin liquidity hit a record $220B, driven by USDT rising $5.3B and USDC surging $6B in the past 30 days[4][1].
- Market Positioning: USDT’s centralized exchange liquidity advantage contrasts with USDC’s regulatory-compliant foothold in DeFi[5][2]. Institutional trust and DeFi adoption are contributing to the growth in USDC exchange reserves, which reached $6.5B – the highest since March 2023[1][5].
- Bullish Sentiment and Exchange Inflows: The $220B stablecoin liquidity pool provides immediate buying power for BTC and other assets, correlating with heightened exchange inflows, with stablecoin deposits rising 10% month-over-month as traders prepare for volatility[2]. Stablecoin expansion often precedes capital deployment into risk assets like BTC[2][3]. This liquidity surge acts as a catalyst for Bitcoin price stability and potential upward pressure, as traders utilize stablecoins to quickly enter and exit positions during market movements[2][4].
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- The surge in stablecoin liquidity, with Tether (USDT) and USD Coin (USDC) market caps escalating, is expanding the crypto sector, propelling capital influx, as revealed in the CryptoQuant Weekly Report.
- Bitcoin (BTC) has made a significant comeback, recovering over 25% from its April 9 low, with the increasing stablecoin liquidity likely contributing to its recent move above key on-chain resistance levels.
- Despite USDT's record-breaking levels, its liquidity on exchanges has yet to fully recover, while USDC balances on exchanges have reached their peak since March 2023.
- The global stablecoin supply surged in 2025, reaching a market cap of ~$180B, with exchange-held stablecoin liquidity hitting a record $220B, driven by USDT rising $5.3B and USDC surging $6B in the past 30 days.
- Institutional trust and DeFi adoption are contributing to the growth in USDC exchange reserves, contrasting with USDT's centralized exchange liquidity advantage.
- The $220B stablecoin liquidity pool provides immediate buying power for BTC and other assets, and correlates with heightened exchange inflows. Stablecoin expansion often precedes capital deployment into risk assets like BTC, potentially leading to price stability and upward pressure.
