Stablecoins hit a record $231 billion, but growth is starting to slow down

Updated

May 22, 2025

Gambar Stablecoins hit a record $231 billion, but growth is starting to slow down

Jakarta, Pintu News – While the market capitalization of stablecoins has reached a record high of $231 billion, there are warning signs emerging as the pace of growth over the past 90 days begins to show a slowdown. Amidst broader crypto market conditions, stablecoins are often an early indicator of market sentiment and liquidity. This slowdown comes at a critical time, given its history of increased stablecoin growth often preceding major market rallies.

Stablecoins and Liquidity Dynamics

Although the supply of stablecoins has reached new peaks, its growth structure shows a fragmented picture. Tether still dominates the market, while new competitors such as FDUSD and PYUSD still have relatively small market shares.

While the liquidity in the system is sizable, it is unevenly distributed, which could signal selective market confidence rather than a full-blown bullish wave. This suggests that while there is liquidity, not all cryptocurrencies are feeling the same impact.

Momentum that Started to Stall

While the overall stablecoin market continues to grow, changes in the last 90 days have shown a decline, indicating hesitation from capital allocators. This decline is in line with a period of consolidation in the altcoin market, indicating a lack of aggressive risk appetite. This is not a complete reversal, but may mark the peak of the cycle unless there is an increase in fund inflows. Historically, pauses like this often precede an acceleration or plateau in market prices.

Repeating the 2021 Pattern

The current structure of stablecoin inflows, particularly the stagnation in 90-day momentum, is similar to the plateau that occurred mid-2021, just before stablecoin expansion picked up again and pushed Bitcoin to new records. If history repeats itself, a new uptick in stablecoin growth could be the trigger for a broader market rally. However, until that happens, caution remains the priority.

Conclusion

Having reached the highest market capitalization yet experiencing a slowdown in growth, the stablecoin market is currently at a crossroads. Market watchers and investors may need to consider the current dynamics to anticipate possible scenarios that will occur in the crypto market.

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