Stablecoins: Crypto’s Last Hope? 🤔

Matrixport observed, with a sigh of relief, that stablecoin inflows have stubbornly persisted despite the market’s latest convulsion, suggesting that the crypto cycle is still on its feet, albeit with a limp. 🐟

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“Despite the recent crypto crash, stablecoin inflows remain one of the clearest signs that this is neither the end of crypto nor the end of this cycle,” noted Matrixport in its latest post. 🧠

Within just this year, Tether has minted about $42 billion worth of stablecoins. Meanwhile, Circle has minted another $32 billion. In total, the two stablecoin issuers have managed to generate $74 billion in fresh inflows that support the crypto market liquidity. 💸

Matrixport’s outlook on stablecoins

Although Matrixport noted that the $74 billion inflows are still a long way from the $3 trillion prediction from Treasury Secretary Scott Bessent, the on-chain analysis firm believes that the phenomenon has proven that the digital asset landscape has diversified and matured over the years. 🧠

This is especially true in the case of stablecoins, which have grown in scale and global adoption. At press time, the total stablecoin market cap has reached over $300 billion, marking a first for the industry. 🌐

Within just five years, the stablecoin market cap grew from just $4 billion to more than $300 billion. In 2025 alone, the market received a $100 billion boost as investors flocked to adopt the new financial payment technology that could process cross-border settlements faster. 🚀

Despite JPMorgan and other entities predicting that stablecoins would serve to boost demand for the U.S dollar, as more overseas companies start making use of stablecoins pegged to the U.S. dollar, Matrixport believes that de-dollarization is also on the rise. 🌍

“The de-dollarization trend is also accelerating, driving demand for stablecoins as on-ramps into higher-yielding assets and as hedges against fiat-currency weakness,” wrote Matrixport in its recent analysis, adding that liquidity has now been flowing into the crypto market through “more sophisticated channels.” 🧠

Back in July 2025, just days after the U.S government passed the GENIUS Act, Executive Director of the President’s Council of Advisers on Digital Assets, Bo Hines, predicted that the crypto market would see a surge in value following the act’s legalization. 🧠

He stated that the digital asset industry would see a leap of value from its current $3 trillion to $4 trillion to about $15 trillion to $20 trillion in the near future, thanks to the stablecoin bill. 💰

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2025-10-15 13:29