Brief
- Stablecoin supply hit a new all-time high above $311 billion this week, led by USDT and USDC, even as Bitcoin slipped below $90,000.
- Cryptocurrency volatility has peaked, with $592.4 million in liquidations in 24 hours, including $230 million in Ethereum and $204 million in Bitcoin, signaling an increase in risk aversion.
- Myriad Markets users give a 97.5% chance that the stablecoin’s market cap will remain below $360 billion in January.
The world stable coin The market hit a new all-time high this week, surpassing $311 billion in total supply, even as broader crypto markets struggle with sharp price declines and heavy liquidations.
According to data from DeFiLlama, the stablecoin’s market capitalization peaked at $311.332 billion on January 18 and currently stands at $309.066 billion.
Tether’s USDT remains the dominant issuer with more than $187 billion in circulation, followed by Circle’s USDC with around $74 billion, according to CoinGecko data.
“The stablecoin market cap continues to grow, even though the total market cap of the digital asset market is struggling,” said Nic Puckrin, digital asset analyst and co-founder of Coin Bureau. Decrypt.
The stablecoin’s new peak comes amid market turmoil, with Bitcoin trading below $90,000, down nearly 30% from its October high, according to CoinGecko data.
Over the past 24 hours, $520 million in total liquidations were split between long positions at $227 million and short positions at $294 million, according to CoinGlass data.
Ethereum accounted for over $189 million in liquidations, while Bitcoin saw over $192 million, indicating increased risk aversion among traders.
Data shows that the “altcoin rout” is forcing crypto traders to turn to stablecoins as a volatility buffer, Puckrin added, while “TradFi’s push into digital assets continues unabated” despite weakness in the broader crypto market.
“At a time when trust in the United States and the greenback is declining globally, stablecoins are of strategic and systemic importance,” he said, noting that he expects their market capitalization “to continue to soar this year and beyond, regardless of sentiment in the broader crypto market.”
On the Myriad prediction market, owned by DecryptAccording to Dastan’s parent company, users give only a 14% chance that an “alternate season” will take place in the first quarter of 2026.
Crypto seeks CLARITY
President Donald Trump told the World Economic Forum in Davos on Wednesday that he hopes to sign the Crypto Market Structure bill “very soon,” potentially resolving last week’s legislative turmoil when Coinbase abruptly withdrew its support for the CLARITY Act.
The exchange’s reversal stems from concerns about provisions that could limit its ability to offer stable-return products, forcing the Senate Banking Committee to take a crucial vote.
Meanwhile, Yaroslav Patsira, fractional director of CEX.IO, said Decrypt that the peak of the stablecoin market was mainly due to the expansion of World Liberty Financial’s $1 stablecoin, backed by Trump, with its offering on Ethereum growing from $660 million to nearly $1.3 billion over the past month, according to DeFiLlama data.
Most other major stablecoins saw “only minimal changes in supply,” with Q4 growth of just $8.1 billion, “the weakest quarterly expansion since Q4 2023,” as a “de-risked market environment” and declining supply of crypto-backed stablecoins slowed issuance.
However, he noted that “the latest all-time high does not appear particularly significant, as the overall stablecoin supply continues to move largely sideways, with localized expansions accounting for most of the changes.”
Myriad users see a 98% chance that the stablecoin’s market cap will not exceed $360 billion next month.
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