- Stablecoin market capitalization reached $220 billion in May of 2025 as the market continues to recover.
- The transaction volumes surged to $1.2 trillion during April, increasing by 15% compared to March.
- Bitcoin dominance decreases and altcoin strength is growing, with volumes in ETH/USDT and SOL/USDT skyrocketing.
After months of uncertainty, the cryptocurrency market is showing concrete signs of recovery. The market capitalization of the stablecoin market reached a record high of $220 billion in May of the year 2025. This bounce back is indicative of a robust comeback of liquidity investor faith, and new energy in digital asset markets.
Stablecoins such as USDC and USDT are important bridges between fiat and crypto. Increased supply often indicates capital coming in and waiting to be utilized. This new injection is indicative of more trading, investments, and engagement in decentralized finance (DeFi) as market participants anticipate possible uptrends and industry booms.
Stablecoin Volumes Rise to $1.2 Trillion
According to analyst Cas Abbé, this record cap was reached on May 2, 2025. CoinMarketCap data shows USDT holding $112 billion and USDC at $33 billion. On-chain analytics from Glassnode confirm that April saw stablecoin transfer volumes hit $1.2 trillion — up 15% from March.
Additionally, the Stablecoin Supply Ratio (SSR) fell to 0.18 on May 1, 2025. This reading shows undervalued of Bitcoin relative to reserve stablecoins. Historically, these types of SSR readings have been followed by bullish market breakouts, with capital transiting to Bitcoin and altcoins with increasing periods of confidence.
Altcoins Gaining Strength as Bitcoin Loses Ground
Bitcoin dominance has dipped from 56.1% to 54.3% over the past week, according to TradingView data. The subtle shift suggests early signs of capital rotation into altcoins. Binance reports volume spikes of 22% in ETH/USDT and 18% in SOL/USDT pairs in the last 24 hours alone.
Backing up this trend, inflows to decentralized exchanges like Uniswap and Curve rose upto 30% week on week to $8.4 billion, according to Dune Analytics. Traders seem to be preparing for altcoin momentum to surge, possibly fueled by emerging narratives such as AI-based blockchains or new DeFi protocols.
As per CryptoQuant data, the $220 billion milestone is significant, highlighting crypto’s resilience and potential for recovery. Stablecoins often serve as an indicator of liquidity, and this record could suggest upcoming price hikes in major digital assets.
Read More: Stablecoin Market Surges $30B in Q1 2025, While Crypto Market Slumps