Stablecoin market cap jumps $37b, hits record high since Trump’s victory

The market capitalization of stablecoins has jumped by $37.6 billion since U.S. president Donald Trump’s electoral victory in November.

A new report from on-chain analytics provider CryptoQuant has revealed that the total value of USD-denominated stablecoins in circulation has jumped to a new record high since the announcement on Nov. 6.

The report, which tracks the total market cap of Tether ( USDT ), USD Coin, Binance USD, True USD, Pax Dollar, and DAI, reveals that they have collectively hit $204 billion, representing a 22 percent rise in value in the 86 days since Trump’s victory.

According to the data, Tether deposited on centralized exchanges has been a major driver of stablecoin liquidity, with the figure growing by 41 percent from $30.5 billion on Nov. 4 to $43 billion on Jan. 31.

86-day stablecoin total market capitalization since November 6, 2024 | Source: CryptoQuant

According to the report, the stablecoin market cap is an important metric for gauging market activity because it acts as an important source of liquidity for trading on exchanges and its growth typically correlates with higher crypto prices, which motivate retail traders to become more active in the market. The data also shows that USDC has grown strongly over the same period, second only to USDT. An excerpt from the report reads:

The expansion of liquidity via stablecoins continues to be driven by Tether’s USDT, but Circle’s USDC has regained traction. The market capitalization of USDT is $139 billion today, up by $19 billion (15%) since November 4. Meanwhile, USDC’s market capitalization has started to increase significantly again, rising by $17 billion (48%) over the same period. USDC’s market capitalization is now $52.5 billion

CryptoQuant analysts believe that the booming stablecoin market could be a signal that the next significant upward movement for Bitcoin and crypto prices could be imminent.

The liquidity impulse, which measures the 30-day percentage change in market capitalization is now a roaring 20 percent for USDC, while USDT is once again slightly positive following a brief contraction at the start of 2024.

Stablecoin market liquidity pulse | Source: CryptoQuant