Crypto bulls have been driven by injecting liquidity into the market for a long time, but their role is constantly evolving. With Stablecoin adoption reaching a record high, how will this affect the next crypto cycle?
Recent Stablecoin Ath
In November 2024, the global Stablecoin market value soared to an unexpected $190 billion, surpassing the previous all-time high of $188 million in April 2022. In addition, centralized exchanges’ Stablecoin trading volume surged, up 77.5% of the month to $1.81, until November 25.
Source: Allium & Diveor
Meanwhile, USDT still dominates, accounting for 82.7% of the total number of centralized exchanges. FDUSD ranked second with a market share of 9.01%, followed by USDC at 8.09%. According to the report, FDUSD’s upward advantage reflects strong adoption in the Asian market, especially in cross-border payments. On the other hand, trade activity with stable and stable euro-based people surged 52.9% to $657 million, indicating a growing adoption rate for European users.
Source: Token Terminal
Tradfi with Stablecoin during the “Red” market
In the gloomy era of crypto markets, the rise of stablecoins has attracted the attention of traditional finance (Tradfi) markets and cryptocurrency markets. Traditional investors and cryptocurrency investors are opening up several opportunities under the Trump administration’s Stablecoin bill. As a result, major trade enthusiasts like Bank of America, Standard Charter, PayPal and Stripe, actively capture bills through their actions. As governments provide regulatory clarity for stability and increased trust and adoption, institutions use stable coins for short-term trading liquidity, real-world utilities, and even plan to launch their own Stablecoins if regulations allow.
Case study of stabilizers Come on the market
Since 2017, Stablecoin supply growth (e.g. USDT, USDC) has been closely linked to crypto liquidity, enabling investors to buy Bitcoin, Ethereum and alternative tokens. This development often leads to price increases as Stablecoins acts as a stable bridge between Fiat and cryptocurrencies, allowing seamless asset conversions within the blockchain ecosystem.
Between 2017 and 2018, Tether (USDT) cast a large number of USDTs on Ethereum and Tron to meet liquidity needs during the crypto bull run. USDT supply grew from billions in early 2017 to over $2 billion at the end of the year, and continued to grow in 2018 (Coingecko, beincrypto). The reason behind this is that USDT is used to buy BTC and ETH, driving prices up as investors avoid Fiat volatility and trade on exchanges such as Binance, Coinbase and Bitfinex. Ultimately, BTC hit $20,000 in December 2017, driven in part by USDT liquidity. However, in 2018, the market collapsed, partly due to concerns about the transparency of forest bands and allegations of future USDT issuances.
Another situation with USDC is that it has increased significantly in 2021, especially Ethereum. According to CoinMarketCap, its market value soared from billions of dollars in early 2021 to more than $50 billion at the end of the year. USDC provides liquidity for major exchanges such as Defi and Coinbase, so investors use it to buy BTC, ETH and DEFI tokens, contributing to the price increase during this period. As a result, BTC and ETH reached an all-time high, while DEFI protocols such as AAVE and UNISWAP benefited from the increase in USDC growth-driven TVL (total value lockdown).
Recently, the continuous casting of USDT and USDC from March to September 2024 is expected to be regarded as the predecessor of a powerful pump from the second half of 2024 (November and December). Therefore, Stablecoin casting signals from whales to the end of 2024 may indicate a bullish trend in crypto prices soon, especially in the first half of 2025, amid current market uncertainty and doubt.
Source: CoinMarketCap
Update: Today, Circle added another $250 million in USDC to the Solana blockchain.
expect
In the past, Stablecoin castings, including USDT and USDC, were primarily used to provide liquidity and fuel crypto market pumps, especially in bull cycles such as 2017-2018 and 2020-2021. However, in 2025, Stablecoins has expanded to be a mere market pump extension, now used for payments, Defi generation and real-world applications, thanks to in-depth interventions from Tradfi and current affairs. With Stablecoins’ optimistic growth, traditional and cryptocurrencies and investors will open up more opportunities to generate.
