Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Cryptocurrency Markets Witness Significant Stablecoin Surge

Cryptocurrency Markets Witness Significant Stablecoin Surge

CointurkCointurk2025/09/30 20:33
By:İlayda Peker

In Brief Stablecoin inflows surged 324% in the third quarter, reaching $45.6 billion. USDT, USDC, and Ethena (USDe) led the inflow surge despite exchange withdrawals. Ethereum hosts most stablecoin activity, indicating sustained DeFi interest.



Summarize the content using AI

Cryptocurrency Markets Witness Significant Stablecoin Surge image 1
ChatGPT


Cryptocurrency Markets Witness Significant Stablecoin Surge image 2
Grok

The third quarter of this year presented intriguing developments in the cryptocurrency markets, marked by rapid growth in stablecoin inflows. Data indicates that stablecoin inflows reached $45.6 billion within just three months, representing a 324% increase on a quarterly basis. Leading this surge were Tether (USDT), USD Coin (USDC), and the steadily rising Ethena (USDe). Despite these strong inflows, there is a noticeable decline in reserves held in exchanges. In one week alone, $5 billion exited exchanges, with $4 billion of that specifically from Binance .

Potential Reasons for Exchange Withdrawals

Experts suggest several reasons for these withdrawals. Users may be shifting to self-custody wallets, avoiding risk, or seeking higher returns in DeFi protocols. Brian Armstrong, CEO of Coinbase, offered a different perspective, suggesting that large banks are attempting to eliminate USDC rewards due to new regulatory laws. Armstrong argues that by removing rewards systems, banks aim to maintain their monopoly. He warned the U.S. Senate that bailing out banks would not benefit consumers.

Cryptocurrency Markets Witness Significant Stablecoin Surge image 3

Ethereum: The Center of Stablecoin Activity

In the past 90 days, over $46 billion flowed into the stablecoin market, with USDT leading at $19.6 billion, followed by USDC with $12.3 billion. Ethena’s USDe experienced a notable rise, contributing $9 billion compared to the previous quarter. PayPal’s PYUSD and MakerDAO’s USDS collectively garnered over $1 billion. A significant portion of this capital influx is centered on Ethereum $4,099 , which hosts $171 billion of the total $297 billion stablecoin market cap. TRON follows with a $76 billion share, while Solana $205 , Arbitrum, and BNB Chain remain below $30 billion.

Moreover, a similar trend was observed in recent announcements by US-based Circle, which reported rapid growth in stablecoin usage in Hong Kong, despite regulatory pressures in the Asian market. This indicates a robust demand for stablecoins globally, not just within the U.S.

In conclusion, the substantial stablecoin inflows highlight a pursuit of stability within the crypto ecosystem. However, the rapid depletion of exchange reserves suggests investors are seeking risk aversion by redirecting funds elsewhere. As regulatory uncertainties persist, the critical position of stablecoins will only intensify. Throughout this, Ethereum’s central role remains pivotal, potentially boosting interest in the DeFi ecosystem.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP News Update: XRP ETF Approaches Debut While Airdrop Counters Fraud

- Ripple launches XRP airdrop to boost adoption amid regulatory clarity and ETF launch preparations. - Surge in scams mimicking Ripple employees and fake airdrops undermines community trust ahead of ETF debut. - XRP faces $2.41 volatility with analysts predicting $30 price target if it breaks out of technical patterns. - Canary Funds' XRP ETF filing and Ripple's $50M SEC settlement signal institutional adoption potential. - Strategic fintech investments and XRPL Accelerator grants aim to counter scam threa

Bitget-RWA2025/11/15 18:54
XRP News Update: XRP ETF Approaches Debut While Airdrop Counters Fraud

Avalanche at $15.21: Will Support Spark a Rally or Trigger a Downturn?

- Avalanche (AVAX) trades at $17.40, consolidating between $15.21 support and $27.48 resistance since months. - Technical indicators show bearish bias with RSI at 38.89 and EMAs below key levels, warning of potential breakdown below $15.21. - Long-term forecasts predict 778% surge to $152.81 by year-end, but depend on overcoming psychological barriers and avoiding bearish breakdowns. - Market analysis emphasizes critical $15.21–$27.48 range as decisive battleground between buyers and sellers shaping AVAX's

Bitget-RWA2025/11/15 18:54
Avalanche at $15.21: Will Support Spark a Rally or Trigger a Downturn?

XRP News Update: Institutions Show Confidence While Bearish Indicators Persist—$2.75 Remains a Key Challenge for XRP

- XRP's price surged near $2.40 amid bullish technical signals and the launch of the first U.S. XRP ETF (XRPC), boosting institutional adoption. - Challenges persist: Bitcoin's bearish trend, low on-chain "supply in profit," and reduced retail demand weigh on XRP's upward momentum. - Evernorth's $343M XRP wallet transfer and BraveNewCoin's bullish flag pattern suggest institutional confidence in ETF-driven growth potential. - Analysts debate XRP's future: While some predict $100+ based on banking infrastru

Bitget-RWA2025/11/15 18:54
XRP News Update: Institutions Show Confidence While Bearish Indicators Persist—$2.75 Remains a Key Challenge for XRP

DeFi’s Open Capital Movement Drives the Growth of Decentralized Science

- Mutuum Finance (MUTM) raises $18.7M in presale, with Phase 6 reaching 99% allocation ahead of its Q4 2025 DeFi protocol launch. - The Ethereum-based platform uses transparent smart contracts to enable decentralized lending/borrowing, eliminating intermediaries and aligning with DeFi's innovation goals. - With 18,000+ holders and a 250% token price surge, MUTM's community-driven model and $500 daily leaderboard rewards accelerate grassroots adoption. - Its 45.5% presale allocation (796M tokens sold) and i

Bitget-RWA2025/11/15 18:54
DeFi’s Open Capital Movement Drives the Growth of Decentralized Science