Stablecoin supply rose to a record $315 billion in the first quarter, increasing by around $8 billion despite a broader slowdown in crypto markets.
The growth came as investors rotated into stablecoins as a defensive strategy, pushing their share of total trading volume to a record 75% and reinforcing their role as crypto’s primary liquidity layer.
Total stablecoin transaction volume exceeded $28 trillion during the quarter, highlighting sustained demand even as overall market activity weakened.
However, underlying trends showed a shift in participation, with retail-sized transfers falling 16% while automated trading surged, accounting for roughly 76% of total volume.
The rise in bot-driven activity suggests growing dominance of algorithmic trading and liquidity provisioning, potentially signalling weaker organic demand from retail investors.
A key divergence also emerged between major issuers, with Circle’s USDC supply increasing by about $2 billion while Tether’s USDT declined by roughly $3 billion.
Growth in stablecoins was partly driven by yield-bearing products, a segment now under increasing regulatory scrutiny as US lawmakers debate rules around interest-like returns.