Stablecoin market capitalisation hit a record high of about $322 billion. Cryptopolitan, a blockchain media outlet, reported on Wednesday that stablecoin supply rose by $2.25 billion over the past week and first-quarter 2026 trading volume reached $8.3 trillion.

The increase came as the overall cryptocurrency market shrank 21% recently. Even so, stablecoins accounted for about 75% of total cryptocurrency trading volume in the first quarter of 2026, and March alone logged $7.5 trillion in monthly trading volume. The market is interpreting this as a signal of recovering trust across cryptocurrencies and a resumption of trading.

By token, Circle's USDC expansion stood out. USDC supply has risen 220% since the end of 2023 to about $78 billion, with an additional $2 billion added in the first quarter of 2026 alone. In contrast, Tether's USDT saw supply fall by $3 billion over the quarter. USDT still held the top spot with a 59.18% market share.

Separate from the supply decline, USDT usage metrics increased. Based on data compiled by Artemis, active USDT addresses rose 30% over the past 30 days to 2.87 million. Trading volume over the same period surged 140% to $60.4 billion, it showed.

Interest-bearing stablecoins were the main driver of the recent supply increase. CEX.IO Research analysed that more than half of the net supply increase last quarter came from interest-bearing stablecoins. Their market capitalisation rose more than 22% in the first quarter alone, adding about $4.3 billion. USDY was cited as one of the asset groups with a large supply increase, with its market capitalisation jumping more than 150% during the quarter.

sUSDS also posted a sharp rise. Its market capitalisation rose by more than $2.5 billion, attracting a larger inflow than several other major interest-bearing stablecoins combined. USDS also showed a top-tier trend among entry assets linked to yield-bearing tokens.

USD1 also benefited as yield access and DeFi use expanded after the launch of World Liberty Market. The interest-bearing stablecoin submarket is currently estimated at $3.7 billion, and the possibility has been raised that it could grow more than threefold in the second half of this year.

Investors see the growth as a signal that the crypto market is building up “dry powder”. Dry powder refers to liquidity waiting to enter the market. The view is that a steep rise in stablecoin supply often appears ahead of a recovery in risk appetite or a resumption of a bull market.

Coingecko's first-quarter 2026 report shows a similar trend. It said total stablecoin market capitalisation in the quarter rose 0.5%, or $1.6 billion, to above $300 billion. The report said this confirmed that stablecoins served as a liquidity pillar even as the overall crypto market underwent a correction.

Trading activity grew faster. Total stablecoin trading volume in the first quarter rose 51% to more than $28 trillion. About 76% of that was bot-generated trading. That was the highest level since the second quarter of 2024 and above 70% in the fourth quarter of 2025. On Ethereum and Tron, the bot-led share of stablecoin activity rose to 72% and 54%, respectively, underscoring greater reliance on automated trading.

USDC also expanded its trading dominance in the process. CEX.IO Research tallied that USDC transfers accounted for nearly 80% of total stablecoin trading volume in the first quarter and 85% of bot-led activity. That suggests the expansion of automated trading further strengthened USDC’s advantage. At the same time, USDC also showed strong growth in adjusted organic activity. On an annualised basis, the organic share of transactions was about 63%, the highest level since 2018.

In contrast, USDT organic trading volume fell 17%. A shift in its role from on-chain to off-chain trading also emerged. As a result, an assessment has emerged that first-quarter figures show the stablecoin market is strengthening its role not only as a simple haven but also as both trading infrastructure and a store of standby liquidity.

The outlook ahead depends on legislative variables. If major countries finalise related bills, the view has been raised that the stablecoin market could exceed $600 billion in 2030 even assuming annual growth of only 15%. The focus going forward is expected to be on regulatory overhauls by country and on how much USDC and interest-bearing stablecoins can draw increased liquidity into the broader cryptocurrency market.