The value of stablecoins hits a record as the crypto market comes under pressure

Source: PortaldoBitcoin Original Title: Stablecoin Value Hits Record High Amid Crypto Market Pressure Original Link: https://portaldobitcoin.uol.com.br/valor-das-stablecoins-bate-recorde-com-mercado-cripto-sob-pressao/ The global stablecoin market reached a new all-time high this week, surpassing US$ 311 billion in total supply, even as the overall cryptocurrency market suffers from sharp price declines and mass liquidations.

According to data from DeFiLlama, the market capitalization of stablecoins peaked at US$ 311.332 billion on January 18 and is currently at US$ 309.066 billion.

Tether’s USDT remains the dominant issuer, with over US$ 187 billion in circulation, followed by Circle’s USDC, with approximately US$ 74 billion, according to CoinGecko data.

“The market capitalization of stablecoins continues to grow, even as the total market cap of digital assets faces difficulties,” said Nic Puckrin, digital assets analyst and co-founder of Coin Bureau.

The new stablecoin peak occurs amid market turbulence, with Bitcoin trading below US$ 90,000, a nearly 30% drop from its October peak, according to CoinGecko data.

In the last 24 hours, total liquidations reached US$ 520 million, divided between long positions (US$ 227 million) and short positions (US$ 294 million), according to CoinGlass data.

Ethereum accounted for over US$ 189 million in liquidations, while Bitcoin had over US$ 192 million, indicating greater risk aversion among investors.

Data shows that the “altcoin decline” is forcing cryptocurrency investors to seek stablecoins as protection against volatility, while “the traditional financial sector’s investment in digital assets continues unabated,” despite the overall weakness of the crypto market.

“At a time when confidence in the US and the dollar is waning globally, stablecoins are strategically and systemically important,” Puckrin noted, expecting their market value “to continue growing exponentially this year and in the coming years, regardless of overall market sentiment.”

Cryptocurrencies Seek CLARITY

President Donald Trump said he expects to sign the cryptocurrency market framework bill “very soon,” potentially resolving last week’s legislative turbulence when a trading platform abruptly withdrew its support for the CLARITY Act.

The shift in stance was driven by concerns over provisions that could limit its ability to offer yield products in stablecoins, forcing the Senate Banking Committee to postpone a crucial vote.

Meanwhile, Yaroslav Patsira, Fractional Director at CEX.IO, stated that the stablecoin market surge was mainly driven by the expansion of World Liberty Financial’s USD 1 stablecoin, supported by Trump, whose supply on Ethereum grew from US$ 660 million to nearly US$ 1.3 billion in the last month, according to DeFiLlama data.

Most other major stablecoins showed “only minimal changes in supply,” with an increase of just US$ 8.1 billion in the fourth quarter, “the weakest quarterly expansion since Q4 2023,” due to a “risk-averse market environment” and the decline in supply of crypto-backed stablecoins, which slowed issuance.

However, it was noted that “the recent all-time high does not seem particularly significant, as the overall stablecoin supply continues to move sideways, with localized expansions accounting for most of the changes.”