While Bitcoin struggles to break above its all-time high and altcoins face difficulty finding solid support, one corner of the crypto market continues to expand: stablecoins. Since the beginning of the bull run, the stablecoin market has shown consistent growth, cementing its reputation as one of crypto’s most reliable and scalable use cases. Unlike volatile assets, stablecoins offer stability, liquidity, and utility across DeFi, trading, and settlement. Related Reading: Ethereum Range Tightens – Liquidity Looms At $2,800 And $2,350 Top analyst Darkfost recently shared fresh data and highlighted a key development many have overlooked — the total supply of ERC-20 stablecoins is rising again. As of today, it has reached a new all-time high of $121 billion. This milestone signals renewed demand and liquidity entering the crypto ecosystem, at a time when other sectors appear stagnant. The rise in stablecoin supply underscores the sector’s resilience and importance. While speculative tokens face resistance, stablecoins thrive on utility and adoption. Whether for hedging, yield strategies, or capital movement, their role in crypto remains foundational. As the broader market waits for its next move, the silent growth in stablecoin supply could be an early signal of renewed momentum across the board. The stablecoin narrative is far from over — in fact, it may just be starting. Stablecoin Growth Accelerates: On-Chain Data Points To Renewed Liquidity Stablecoins have emerged as one of the most impactful innovations in crypto, creating a vital bridge between traditional finance (TradFi) and decentralized finance (DeFi). This narrative gained massive traction in June when Circle (NASDAQ: CRCL), the company behind USDC, went public on the New York Stock Exchange. Initially priced at $31 per share, Circle’s IPO exceeded all expectations — closing the day at $82.84, marking a 167% gain. Today, CRCL trades nearly six times above its IPO price, giving the company a $42 billion market cap and reinforcing confidence in the stablecoin business model. On-chain insights shared by Darkfost add another layer to the story. According to the data, the total supply of ERC-20 stablecoins has started rising again and just hit a new all-time high of $121 billion. ERC-20 stablecoins are cryptocurrencies built on the Ethereum blockchain that follow the ERC-20 token standard. They are designed to maintain a stable value, usually pegged to fiat currencies like the US dollar (e.g., USDC, USDT, DAI). This surge in supply is critical because stablecoins are minted on demand — their issuance directly reflects user demand and fresh liquidity entering the system. This expanding supply meets the needs of protocols and exchanges that face rising user activity and capital inflows. While market sentiment remains cautious, if the stablecoin supply continues to grow, it would signal renewed risk appetite and capital deployment. In that case, stablecoins may once again serve as the early catalyst for the next major phase in the crypto bull cycle. Related Reading: Altcoins Set A Higher Low – Bulls Target 2024 High To Trigger Altseason Dominance Hovers Below 8%: A Neutral Yet Strategic Positioning The weekly chart shows stablecoin dominance currently sitting at 7.90%, a level that reflects cautious but sustained interest in liquidity reserves across the crypto market. After a sharp climb between 2020 and mid-2022—when stablecoin dominance peaked above 16% during risk-off periods—dominance has gradually declined, aligning with risk-on rotations into Bitcoin and altcoins during bull runs. However, since early 2024, dominance has consolidated between 7% and 10%, signaling a more balanced environment. The current level remains just above the 50-week and 100-week moving averages (7.76% and 8.02%, respectively), suggesting strong horizontal support. Meanwhile, the 200-week moving average at 9.30% acts as a long-term ceiling. Related Reading: Ethereum Risks Downside If Resistance Holds: $2,700 Level Is Critical This neutral position implies that market participants are neither fully risk-on nor risk-off. If dominance rises from here, it could either reflect increased fear (capital flowing out of volatile assets) or fresh liquidity entering the market, especially if paired with a rise in stablecoin supply, which we’re already witnessing with ERC-20 tokens. Featured image from Dall-E, chart from TradingView
Digital asset prices may still see substantial gains before the market corrects, the analyst said.
According to data from CryptQuant, there is currently less than 2.5 million Bitcoin available for purchase on digital asset exchanges.
About $180 million in short positions have been wiped as Bitcoin hit another new all-time high of $81,358.
Trump’s election win sparked a surge in searches, indicating increased retail investor interest in the digital asset.
The crypto market is rallying 6.8% following the US presidential elections, which made Bitcoin soar to a new all-time high (ATH). As a result, most of the market saw a green daily close, with Solana (SOL) recording a 15.8% surge in the last 24 hours and regaining a key support level. Related Reading: Shiba Inu (SHIB) Gearing Up For Massive Bullish Wave Following 8% Daily Surge, 110% Rally Ahead? Solana Dethrones BNB As 4th Largest Crypto The result of the US elections gave the crypto market the long-awaited boost many investors and market watchers expected. In the early hours of Wednesday, the largest cryptocurrency by market capitalization surged about 8.6% toward its new ATH of $75,358. This surge, fueled by the victory of pro-crypto Republican candidate Donald Trump and a mostly crypto-friendly Congress over US Vice President Kamala Harris, ignited a bullish rally across the market. Solana followed BTC’s lead and jumped over 15% to turn the $180 level into support. Moreover, the cryptocurrency reached its highest price since July, nearing the $190 resistance level. SOL’s daily activity skyrocketed in the last 24 hours, rising 210% to a $10.7 billion daily trading volume. Meanwhile, the cryptocurrency saw a 14.66% increase in market capitalization, surging to an $88.1 billion market cap. As a result, Solana flipped Binance Coin (BNB)’s $85 billion market cap, dethroning BNB as the fourth largest cryptocurrency by this metric. This performance fueled investors’ bullish sentiment on the cryptocurrency, with some market watchers predicting a bullish wave towards Q1’s highs. Is SOL Getting Ready For $400? Solana was deemed one of the strongest cryptocurrencies during Q3’s market retraces, holding above its breakout levels while most altcoins struggled. Following last night’s performance, crypto Trader Koz called SOL’s chart “one of the absolute best-looking charts out there.” The cryptocurrency’s surge above the $180 mark represents a breakout from an 8-month consolidation range that started after Solana hit its yearly high of $202. Similarly, World of Charts considers SOL as ‘looking more bullish than before.” The analyst noted that the cryptocurrency finally broke above the upper line of a bullish flag pattern after nearly breaking above it in late October. World of Charts suggested that after the successful breakout, a massive bullish wave is around the corner. To the analyst, this wave could ultimately send Solana’s price toward a new ATH of $400. Moreover, crypto analyst Jelle highlighted the breakout, stating that SOL is ready to retest the yearly highs. Related Reading: PolitiFi Memecoins Soar: Trump-Themed Tokens Rally 30% Ahead Of US Elections A reclaim of the $200 mark, not seen since March, could propel the cryptocurrency above its ATH of $260 in the coming weeks. However, it is key that Solana holds the $180 mark to continue its bullish ascend, as a rejection from this zone could see SOL’s price pullback to the $160 support. SOL trades at $186.9, a 4.12% and 27.56% increase in the weekly and monthly timeframes. Featured Image from Unsplash.com, Chart from TradingView.com