Stablecoin supply advances $ 30B in Q1 while investors are raising against volatility
Despite a $ 30 billion climbing Stablecoin’s supply to new note levels, cryptocurrency investors remained careful as they await market stability amid fears of US tariff fears.
The total stablecoin supply increased by more than $ 30 billion in the first quarter of 2025, even though the general crypto market capitalization of the crypto market fell 19%, according to a new crypto intelligence platform report IntotheBlock.
“The relationship between crypto and stock has climbed as Macro’s expectations moved quickly from the” Golden Era “to optimizing the tariff-led tariff and gloom,” according to a quarterly IntotheBlock report, shared with the cointelegraph.
Source: ITB Capital Markets
The growth of Stablecoin supply reflects a “careful stance, with investors holding stablecoins as a fence, likely to wait for market stability or better entry points,” according to Juan Pellicer, Senior Research Analyst on the Intotheblock Crypto Intelligence Platform.
Related: Stablecoin Rules Required in the US before Crypto Tax Reform, Experts say
Industry leaders foretold that the Stablecoin supply can exceed $ 1 trillion In 2025, potentially acting as a significant catalyst in the crypto market.
“We are in a stablecoin adoption upswell who is likely to rise significantly this year,” David Pakman said coinfund during the cointelegraph Chainreaction Live Show on X on March 27. “We can go from $ 225 billion stablecoins to just $ 1 trillion this year on the calendar.”
The supply of stablecoin Exceeded $ 219 billion Record high on March 15. Analysts View the growing stablecoin supply as a signal for the continuation of the bull cycle.
Related: Stablecoins, tokenized assets get Trump tariffs
Stablecoin activity rises in Ethereum
In the first quarter of the year, the Ethereum network saw more than $ 3 trillion worth of Stablecoin transactions in Mainnet, excluding layer-2 networks.
The number of unique addresses using stablecoins in Ethereum Mainnet also exceeded the record 200,000 mark at the first time in March.
Stablecoin’s active -active address in Ethereum Mainnet. Source: Intoteblock
Despite the growing blockchain activity, the price of ether (Eth) fell over 45% in the first quarter of 2025, Cointelegraph Market Pro Data displays.
ETH/USD, 1-year chart. Source: Cointelegraph markets Pro Data displays.
ETH rejection is linked to a combination of wider macroeconomic concerns and specific Ethereum pressure, such as increasing competition from networks such as Solana and increasing layer-2 protocols.
“Some analysts argue that layer-2 solutions release ETH value by transferring activity to the main chain, but it does not overlook how L2s still rely on Ethereum for security fees and pay, contributing to its ecosystem,” Pellicer said.
He added that decline in ETH was more likely due to market sentiment and uncertainty about Ethereum’s ability to capture the value from a broader ecosystem.
However, other analysts see a silver lining on tariff -related investment concerns. Foretold by the analysts of Nansen a 70% chance for crypto markets below By June 2025 as Tariff Negotiations Advance.
https://www.youtube.com/watch?v=gnunx0QWH3Q
Magazine: Bitcoin $ 500K Prediction, Spot Ether ETF ‘Staking Issue’ – Thomas Fahrer, X Hall of Flame
