Despite a $30 billion surge in stablecoin present to new file ranges, cryptocurrency merchants remained cautious as they awaited market stability amid US tariff fears.
The entire stablecoin present rose by better than $30 billion throughout the first quarter of 2025, while the final crypto market capitalization fell 19%, in accordance with a model new report by crypto intelligence platform IntoTheBlock.
“The correlation between crypto and stocks climbed as macro expectations quickly shifted from “golden era” optimism to tariff-led doom and gloom,” in accordance with IntoTheBlock’s quarterly report, shared with Cointelegraph.
Source: ITB Capital Markets
The stablecoin present’s progress shows a “cautious stance, with investors holding stablecoins as a hedge, likely waiting for market stability or better entry points,” in accordance with Juan Pellicer, senior evaluation analyst at IntoTheBlock crypto intelligence platform.
Related: Stablecoin rules needed in US before crypto tax reform, experts say
Industry leaders have predicted that the stablecoin supply may surpass $1 trillion in 2025, most likely showing as a significant crypto market catalyst.
“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” CoinFund’s David Pakman said all through Cointelegraph’s Chainreaction reside current on X on March 27. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.”
The stablecoin present surpassed the $219 billion file extreme on March 15. Analysts see the rising stablecoin present as an indication for the continuation of the bull cycle.
Related: Stablecoins, tokenized assets gain as Trump tariffs loom
Stablecoin train soars on Ethereum
During the first quarter of the yr, the Ethereum neighborhood seen over $3 trillion worth of stablecoin transactions on the mainnet, excluding layer-2 networks.
The number of distinctive addresses using stablecoins on Ethereum mainnet moreover surpassed the file 200,000 mark for the first time in March.
Stablecoin day-to-day full of life addresses on Ethereum mainnet. Source: IntoTheBlock
Despite the rising blockchain train, the worth of Ether (ETH) fell by over 45% in the middle of the primary quarter of 2025, Cointelegraph Markets Pro data reveals.
ETH/USD, 1-year chart. Source: Cointelegraph Markets Pro data reveals.
The decline in ETH is linked to a mixture of broader macroeconomic issues and Ethereum-specific pressures, harking back to elevated rivals from networks like Solana and the rise of layer-2 protocols.
“Some analysts argue that layer-2 solutions dilute ETH’s value by shifting activity off the main chain, but this overlooks how L2s still rely on Ethereum for security and pay fees, contributing to its ecosystem,” Pellicer said.
He added that the decline in ETH is further seemingly on account of market sentiment and uncertainty about Ethereum’s potential to grab value from its broader ecosystem.
Still, totally different analysts see a silver lining to the tariff-related investor issues. Nansen analysts predicted a 70% chance for crypto markets to bottom by June 2025 as tariff negotiations advance.
Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame
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