Stablecoin Exchange Reserves Hit Record High as Market Cap Growth Slows: CryptoQuant

Stablecoin liquidity continues to expand, but the pace of growth has slowed considerably, according to the latest analysis from ￰0￱ expansions in stablecoin market capitalization have dropped to around $1.1 ￰1￱ is in stark contrast to the $4–8 billion weekly inflows observed in late 2024, which were instrumental in supporting Bitcoin’s sharp upward ￰2￱ growth is ￰3￱ expansions peaked at just $1.1B, down from $4–8B in late ￰4￱ tailwinds are weaker, limiting Bitcoin’s upside ￰5￱ — ￰6￱ (@cryptoquant_com) August 27, 2025 Tether’s USDT, the dominant stablecoin, has also seen its 60-day growth moderate, holding at roughly $10 billion compared with peaks above $21 billion earlier in the ￰7￱ the figures remain in positive territory, they indicate a cooling trend in capital ￰8￱ of Liquidity Moderation The data suggests a broader moderation in crypto ￰9￱ aggregate stablecoin market cap growth and USDT issuance are slipping slightly below their moving-average trends, showing that new inflows of capital into the digital asset space are ￰10￱ slowdown does not necessarily point to outflows or contraction, but it does show that the rapid pace of new issuance seen earlier in the year has ￰11￱ traders and investors, this shift suggests that while liquidity conditions remain supportive, the market may not enjoy the same acceleration that drove previous bullish ￰12￱ Reserves Reach Record High Despite the moderation in issuance, exchange reserves tell a different ￰13￱ total value of stablecoin holdings on exchanges reached a new all-time high of $68 billion on August 22, surpassing the previous record set in February 2022, reports ￰14￱ shows the substantial dry powder available for market activity.

Tether’s USDT dominates exchange balances, accounting for $53 billion, while USD Coin (USDC) follows with $13 ￰15￱ elevated reserve levels suggest that traders and institutions continue to keep liquidity on hand, potentially positioning themselves for opportunistic market moves, reports ￰16￱ Leads in Altcoin and Stablecoin Deposits Binance continues to assert itself as the top exchange for altcoin trading, leading the market in altcoin deposit ￰17￱ the peak of last year’s November–December altcoin rally, Binance handled as many as 59,000 deposits in a single day—more than double Coinbase’s roughly 26,000 and far above the 24,000 total going to all other exchanges ￰18￱ in calmer market conditions, Binance maintains its lead, averaging about 13,000 altcoin inflow transactions per ￰19￱ contrast, Coinbase averages 6,000, and other platforms average about 10,000.

Outlook: Consolidation Over Parabolic Rallies CryptoQuant’s analysis also notes a divergence between slowing market cap growth and record-high exchange ￰20￱ one hand, the moderation in issuance suggests that strong new capital inflows are not driving the market at ￰21￱ the other hand, the unprecedented stockpile of stablecoins on exchanges indicates ample buying power remains ￰22￱ combination points to a market environment that could favor consolidation phases rather than sustained parabolic ￰23￱ stablecoin issuance accelerates again, the liquidity backdrop will likely support stability and selective surges rather than broad, explosive ￰24￱ investors, this dynamic suggests that caution and patience may be required as markets adjust to a more measured pace of growth.