Stablecoin activity has increased slightly in the last 24 hours after trade war between the US and other countries continue. IntoTheBlock shows that addresses hit 300,000 while on-chain data shows $72 billion worth of supply.
This is the highest level of stablecoin activity since February 2025 and shows how investors have taken to stablecoins amidst the massive volatility in the crypto market. The move to stablecoins wasn’t surprising, given the plunge in crypto prices led by Bitcoin.
While crypto prices have been struggling for weeks due to economic uncertainties, Monday saw the biggest decline in a long time, with Bitcoin crashing from $81,000 to $74,000. Other digital assets followed with a double-digit percentage drop to compound a rough year for the crypto sector.
In addition, there was volatility in the market after fake news about the US pause on tariffs for 90 days made its way to the market. The news caused volatility, which in turn caused the liquidation of positions worth $200 million in just an hour.
Stablecoins continue to grow amid struggles in the crypto industry
Meanwhile, the global uncertainties that have crippled the crypto sector and resulted in a more than 24% decline in the cryptocurrency market cap in the last 90 days have no impact on stablecoins. The sub-sector has continued growing, with a total circulating supply of around $234 billion. This represents a 13% growth year to date for the sector, mostly due to an increase in Circle USDC and Tether USDT supply within that period.
It is also not surprising that the stablecoin market is expected to grow as analysts expect the volatility from the trade wars to continue. One project that will aid this cause is the Trump-backed DeFi project World Liberty Financial (WLFI), which is planning to launch its USD1 stablecoin and wants to distribute it via airdrop to WLFI token holders.
In addition, countries are now trying to regulate their stablecoin market, with most feeling it could help the sector thrive. Kenya recently proposed a bill to regulate stablecoins and the crypto sector, giving the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) authority to regulate the industry.
The US is also making its efforts to regulate stablecoins, while the UK has stablecoin regulations on its roadmap for 2026. Many believe such regulations will improve stablecoin credibility, but they also affect offshore stablecoins such as USDT. However, Tether CEO believes that any regulatory framework will not affect its stablecoin as the company can always make a stablecoin that will comply with US laws.