Stablecoin balances across cryptocurrency exchanges have reached a yearly high of $41 billion, signaling increased liquidity and interest in the crypto market following the U.S. election. The influx of capital is clearly reflected in the growth of the leading stablecoins, Tether (USDT) and Circle (USDC).
Since November 5, the supply of USDT and USDC combined has risen by over $5 billion. USDT’s supply saw a significant boost of $3.8 billion, reaching a new all-time high of $124 billion. Meanwhile, USDC’s supply grew by $1.6 billion, bringing its total to nearly $37 billion, according to TradingView data.
This rise in stablecoin supply is seen as a positive sign for the overall market, as stablecoins are widely used for liquidity in crypto trading. Tether, primarily used on offshore exchanges, and USDC, which is popular on U.S.-centric exchanges like Coinbase and DeFi applications, provide a reliable store of value pegged to the U.S. dollar.
David Shuttleworth, partner at Anagram, pointed out that leading up to the election, many retail and institutional investors were on the sidelines, waiting for the outcome. With the election results in, stablecoins quickly began flowing into exchanges, helping to fuel the rally in digital assets.
A notable indicator of this shift was the increase in Ethereum-based stablecoins on exchanges. Nansen’s on-chain data shows that before the election, the amount of stablecoins on exchanges was steadily declining, as investors held off on trading. However, after November 5, stablecoin balances surged to $41 billion from approximately $36 billion in early November, showing a clear uptick in buying interest.
Along with the increase in stablecoin supply, the crypto market saw a significant rise in activity. Bitcoin, for example, reached record highs following the U.S. election results, sparking optimism for a more crypto-friendly regulatory environment. This sentiment has been a key driver of the recent rally in digital assets.
On other blockchain networks, stablecoin growth was also evident. USDC’s supply on the Solana network grew by 14% to nearly $2.9 billion as DeFi activity saw a resurgence. Similarly, Tether’s presence on the TON blockchain surged by 10%, reaching a new record of $1.1 billion as Telegram’s blockchain ecosystem continues to develop.
