Stablecoin Reserves held within cryptocurrency exchanges surge to $68 billion, as the rate of supply expansion begins to decrease.

In a recent report by on-chain analytics firm CryptoQuant, it has been revealed that stablecoin reserves on centralized exchanges have reached a new record of $68 billion. This surge surpasses the previous peak of $59 billion set in February 2022, and has been primarily driven by USDT and USDC holdings.

The record was set around August 2025, with Tether's USDT holdings amounting to $53 billion and USDC balances at $13 billion. This marks a significant increase from the October 2023 low and more than doubles the reserves' value.

However, the report also highlights a slowdown in Tether's growth. Whereas net additions were previously between $4-$8 billion, recent inflows have softened to only $1.1 billion. Tether's supply expansion over the last 60 days is $10 billion, less than half of the $21 billion increase recorded at the end of 2024.

CryptoQuant interprets this as a reduction in the strength of liquidity conditions for crypto markets. If supply expansion continues to cool, markets may move toward consolidation. Rapid stablecoin growth in previous cycles aligned with notable price rallies, especially in Bitcoin and other major assets.

The broader expansion of stablecoin supply has shown signs of slowing. This weaker supply expansion could still trigger another round of bullish momentum, but it may limit the pace of further market advances. The report suggests that the current slowdown may limit the pace of further market advances.

The report concludes that Tether continues to dominate exchange reserves. Despite the slowdown, the organization views this as reduced momentum in one of the market's largest liquidity sources. CryptoQuant views this as a reduction in the strength of liquidity conditions for crypto markets.

Despite the supportive liquidity, it is not as strong as in late 2024. Renewed issuance could still trigger another round of bullish momentum, but the current slowdown may limit the pace of further market advances. The report notes that this weaker supply expansion reduces the strength of liquidity conditions for crypto markets.

Stablecoin Reserves held within cryptocurrency exchanges surge to $68 billion, as the rate of supply expansion begins to decrease.