Stablecoin market hits 2-year high of $183B amid Trump victory fueled optimism

Insights Stablecoins

Tether leads stablecoin surge with $8 billion increase, boosting USDC to March 2023 levels.

The crypto market has witnessed a significant influx of about $10 billion in new capital following President Donald Trump’s victory in the US elections on Nov. 5.

DeFiLlama data shows that Tether’s USDT led the charge, rising $8 billion to a new record of $128 billion. Circle’s USDC followed closely, adding $2 billion to reach $37 billion — its highest level since March 2023.

Tether USDT and Circle USDC Supply (Source: DeFillama)

The recent growth has pushed the overall stablecoin market supply to $183 billion, its highest value since March 2022. The increase signals a significant recovery from the market downturn seen during the crypto winter in the last two years. Since then, new players such as PayPal, BitGo, and Ripple have entered the stablecoin sector, contributing significantly to its expansion.

Overall Stablecoin Supply (Source: DeFillama)

Market observers believe that the rise in stablecoin supply is a positive indicator for the broader crypto market, suggesting renewed investors’ interest in the ecosystem. Stablecoins, typically pegged to assets like the US dollar, serve as a reliable liquidity source and facilitate crypto trading.