The crypto market ready to leap thanks to the explosion of stablecoins

The crypto market sometimes feels like it is holding its breath. Investors watch the Fed, interest rates, whale movements. Yet, the real fuel might be elsewhere. Stablecoins, those discreet assets often considered mere trading tools, are experiencing explosive growth. With over $240 billion in circulation, they form a liquidity reserve ready to be deployed. So, what if the next surge doesn’t depend on traditional giants, but on this stable and silent manna?

Stablecoins: when liquidity becomes the secret weapon of the crypto market

If the crypto market approaches $3.85 trillion in capitalization, part of its strength lies in stablecoins. Analyst Darkfost summed up the trend: ” In brief, it’s stablecoin season, meaning a huge amount of liquidity is flowing into the market. For every stablecoin issued, disregarding rebalancing mechanisms, there’s a corresponding influx of fiat currency entering the market.”

In plain terms, every dollar converted into stablecoin becomes an entry ticket for Bitcoin, Ethereum or other altcoins. The total supply now stands at $240 billion, a record illustrating the strength of this flow. And this amount doesn’t even include some new entrants like ENA, already valued near $14 billion.

This growth is ” literally exploding.” It reflects renewed confidence and increased purchasing power, two drivers often stronger than mere speculation. 

In the shadows of the spotlight, stablecoins become the leading indicator heralding a wave of capital ready to pour into the queen of cryptos and her procession of altcoins.

Binance, giant barometer of stablecoin flows

September 8 marked a turning point. Binance recorded a historic high: $6.2 billion in stablecoins transferred in a single day. Darkfost highlighted it: 

These inflows may partly come from Binance itself to meet the needs of exchange users, but they also reflect stablecoin transfers made by investors to the platform. This suggests liquidity continues to flow into the market, with Binance standing out as a major entry point. 

As a result, available stablecoin reserves of Binance reach nearly $39 billion, a historic peak. This colossal level shows how much the crypto exchange has become a thermometer of overall confidence. 

The bigger these reserves grow, the more the crypto market seems ready to catch its breath. And this movement comes as the Fed hints a 100% probability of a rate cut at the next FOMC. 

In other words, liquidity is gathering, like a silent army, ready to be deployed on risky assets.

Ethereum, global capital of stablecoins and tokenization

While Binance channels liquidity, Ethereum is the main reservoir. The network alone hosts $165 billion in stablecoins, representing 57% market share, far ahead of Tron (27%) and Solana (<4%). Last week, an additional $5 billion flowed in, consolidating this leadership.

But Ethereum doesn’t stop at stablecoins. The blockchain also concentrates the majority of real-world asset (RWA) tokenization. Treasuries, private credit: everything converges on this network. Fidelity even launched its own tokenized US Treasuries fund, proof of traditional finance’s gradual entry into this new playground.

Some key figures to remember:

• Total stablecoin supply: $240 billion;
• Binance stablecoin reserves: $39 billion;
• Ethereum: $165 billion in stablecoins, or 57% of the market;
• Tokenized gold on Ethereum: $2.4 billion.

All indicators show liquidity has never been so abundant and ready to support the next phase of the crypto market.

If stablecoins appear as the invisible force behind this bullish cycle, they are not unanimous. Some economists fear their influence goes beyond the crypto market. An adviser to Vladimir Putin even claimed that these assets would be used by the United States to manipulate their debt and strengthen their global financial dominance. This view reminds us that beyond liquidity, stablecoins could become a geopolitical weapon, turning a technical tool into a lever of state power.