Stablecoin reserves on crypto exchanges have significantly declined, indicating reduced market liquidity. However, the total supply of stablecoins continues to grow.
Decline in Stablecoin Reserves on Exchanges
Stablecoin reserves on crypto exchanges dropped by 9%, equivalent to a $3 billion decline. Data from CryptoQuant shows that ERC-20 stablecoin holdings on Binance fell from over 31 trillion to just under 29.4 trillion, indicating diminished purchasing power among traders.
Increase in Total Stablecoin Supply
Despite falling reserves on exchanges, the total stablecoin supply is expanding. According to Block Analitica, the total supply reached $18.82 billion as of August 6, 2025, significantly up from nearly $4 billion in January 2024. This rise highlights the growing interest in stablecoins beyond exchange use.
Development of U.S. Policy on Stablecoins
On July 30, 2025, the White House released its latest crypto report under Executive Order 14178. Notably, the report omits references to Bitcoin and digital assets and focuses on stablecoin innovation in cross-border transactions, underscoring the administration's priorities for blockchain technology with real economic utility.
The decline in stablecoin reserves on exchanges, coupled with the increase in total supply and new regulatory focus on stablecoins, illustrates the dynamic nature of the cryptocurrency market and its adaptation to changing conditions.
