Stablecoin balances on crypto exchanges hit a yearly peak of $41 billion this week, highlighting a surge in liquidity and investor interest following the U.S. election. This influx signals growing demand for digital assets, with leading stablecoins Tether (USDT) and Circle (USDC) driving the charge.
Data from TradingView shows that since November 5, the supply of USDT grew by $3.8 billion, setting a new record of $124 billion, while USDC expanded by $1.6 billion to nearly $37 billion. Combined, the $5 billion increase underscores a wave of capital entering the crypto ecosystem.
Stablecoins, which are pegged to the U.S. dollar, serve as essential trading instruments in the crypto market, providing liquidity for exchanges and decentralized finance (DeFi) applications. USDT dominates offshore trading, while USDC remains the preferred stablecoin on U.S.-focused platforms like Coinbase and within DeFi protocols.
“Post-election, we’ve seen sidelined capital flood into the market, reflecting both retail and institutional confidence,” said David Shuttleworth, a partner at Anagram. “Stablecoins are fueling this momentum as buy-side pressure mounts.”
Nansen on-chain data reveals a marked jump in Ethereum-based stablecoins held on exchanges. Balances climbed from $36 billion pre-election to $41 billion, illustrating renewed investor confidence. This increase aligns with a broader crypto rally, spurred by bitcoin reaching historic highs and anticipation of a more crypto-friendly regulatory environment under the new administration.
Other blockchains also saw significant stablecoin activity. USDC on Solana rose by 14% to $2.9 billion amid heightened DeFi engagement, while USDT on the TON network expanded by 10% to $1.1 billion, driven by the growing ecosystem linked to Telegram.
The rapid expansion in stablecoin supply suggests a strong foundation for sustained market growth as traders and investors position themselves to capitalize on the ongoing rally in digital assets.
