Stablecoins hold up crypto liquidity amidst market crash
The post Stablecoins hold up crypto liquidity amidst market crash appeared on BitcoinEthereumNews.com.
Matrixport noted that stablecoin inflows have continued to dominate the market in spite of the crash, signaling that the crypto cycle is still going strong amidst volatility. Summary Despite recent market crashes and increased short positions from whales, the stablecoin sector has remained resilient, with USDT and USDC collectively generating $74 billion in new inflows. Matrixport highlighted the rapid growth and maturity of the stablecoin market, now exceeding $300 billion in value, as evidence of the crypto industry’s diversification. In a recent report, the on-chain analysis platform highlighted the growth of stablecoins and their ability to hold up despite crashes in the market. In fact, it may be the hedge that holds up crypto liquidity in spite of market volatility seen in other tokens. On Oct. 14, the crypto market experienced a major crash that led to several major tokens like Bitcoin (BTC) and Ethereum (ETH) plummeting below established thresholds. Not only that, ahead of the Fed Chair speech, whales were seen powering through by increasing short positions on a number of altcoins as they anticipated a market crash. However, despite these setbacks, the stablecoin market remained strong. According to the post, Tether’s stablecoin USDT (USDT) has shown increasing growth, rising to $180.6 billion in total market cap. Meanwhile, Circle’s USDC (USDC) managed to rack up $76.1 billion in value on-chain. Matrixport noted the growth of stablecoins as a driving factor for liquidity during this cycle | Source: DeFi Llama “Despite the recent crypto crash, stablecoin inflows remain one of the clearest signs that this is neither the end of crypto nor the end of this cycle,” noted Matrixport in its latest post. Within just this year, Tether has minted about $42 billion worth of stablecoins. Meanwhile, Circle has minted another $32 billion. In total, the two stablecoin issuers have…
Filed under: News - @ October 15, 2025 10:28 am