Stablecoin volume explodes to $10T in January – why this may be crypto’s strongest bullish signal yet
Stablecoins started the year with a number that is difficult to ignore: an eye‑watering 10 trillion dollars in volume during January alone. What makes this even more striking is that this surge in activity came while the broader crypto market was leaning firmly risk‑off, with heavy fear and uncertainty hanging over major assets.
In other words, money did not leave the crypto ecosystem – it just moved into its neutral gear.
Record flows in a bearish backdrop
January was harsh for large‑cap cryptocurrencies. Bitcoin, for instance, delivered a return of -10.17%, its weakest monthly performance since 2022. Sentiment was clearly defensive, and many assets fell back below previous local highs.
Yet, despite the pessimism, on‑chain stablecoin flows told a completely different story:
– Total stablecoin volume in January: around 10 trillion dollars
– Full‑year 2025 stablecoin volume: about 33 trillion dollars
That means close to one‑third of last year’s activity was compressed into just 30 days at the start of the new year. This kind of concentration rarely happens by accident.
Drilling into individual issuers shows how uneven – and revealing – that growth was.
USDC dominates: Circle quietly takes the lead
Circle’s USDC emerged as the dominant driver of this volume spike. In January alone, USDC processed roughly 8.4 trillion dollars in transactions, representing the lion’s share of the total stablecoin flow.
Tether’s USDT, still the largest stablecoin by market cap, added about 1.8 trillion dollars in volume over the same period. Meanwhile, decentralized stablecoin Dai contributed another 58.1 billion dollars.
The breakdown looks roughly like this:
– USDC: ~8.4T dollars in volume
– USDT: ~1.8T dollars
– DAI: ~58.1B dollars
This distribution matters. It shows that institutional‑grade and compliance‑focused capital – which typically prefers USDC – remained highly active even in a fearful market. Rather than abandoning crypto altogether, a significant slice of participants simply parked capital in stablecoins and waited.
More than a “flight to safety”
The instinctive explanation for rising stablecoin volume in a downturn is straightforward: risk‑averse investors seek shelter in dollar‑pegged assets. That is part of the story, but January’s numbers suggest something deeper.
If capital were merely running for cover, one would expect stablecoins to sit idle on exchanges and in wallets. Instead, on‑chain data indicates that this liquidity is being deployed into productive use cases, especially in the realm of tokenized real‑world assets (RWA) and high‑throughput chains like Solana.
In other words, stablecoins are not just a parking lot – they are becoming the fuel for the next phase of crypto’s utility narrative.
Solana, USDC, and the RWA connection
One of the most telling data points from January was the role of Solana. Circle minted approximately 10.5 billion dollars’ worth of USDC on the Solana network during the month. That expansion in native liquidity coincided with a clear uptick in RWA‑related activity.
Real‑world assets – tokenized representations of things like bonds, Treasuries, private credit, and other off‑chain financial instruments – saw a noteworthy jump:
– RWA total value locked (TVL) on Solana climbed about 8%
– Around 100 million dollars was added to RWA TVL on Solana, pushing it to a new peak of roughly 1.19 billion dollars
Across the entire RWA ecosystem, the move was even more dramatic:
– Overall RWA inflows surged by about 18%
– Roughly 3.7 billion dollars in new capital entered the sector
– Total RWA TVL hit an all‑time high of about 24.19 billion dollars
These numbers highlight a fundamental shift: stablecoins are not simply being hoarded for protection; they are actively powering one of the fastest‑growing segments in crypto.
Solana’s paradox: falling price, booming usage
Despite this surge in economic activity, Solana’s native token, SOL, fell by about 16% over January. At first glance, this looks bearish. But underneath the surface, structural demand for the network increased:
– Solana ranked as the fourth most active chain by transaction volume
– It processed around 490 billion dollars in transactions during the month
So, while SOL’s market price was under pressure, the chain itself was busier than ever. This divergence between fundamentals (usage, liquidity, TVL) and price action is one of the clearest signs of potential undervaluation.
Why stablecoin liquidity can be a leading indicator
In traditional markets, rising liquidity in “safe” instruments like cash, money‑market funds, or short‑term Treasuries often precedes renewed risk‑taking. Once macro conditions improve, that dry powder rotates back into equities, credit, and other risk assets.
Stablecoins now play a similar role inside the crypto economy:
1. They serve as a dollar proxy for traders and investors.
2. They enable near‑instant settlement across chains and platforms.
3. They underpin DeFi, tokenized RWAs, and increasingly, payment rails.
When 10 trillion dollars’ worth of value moves through stablecoins in a single month during a risk‑off period, it suggests that capital is not exiting the ecosystem. Instead, it is regrouping – waiting for clearer signals before rotating back into higher‑beta exposure like altcoins, DeFi tokens, and even Bitcoin itself.
That’s why many view this stablecoin wave as one of the most constructive signals for the next leg up.
From safety to utility: the subtle market rotation
The evolution is now moving beyond “stablecoins as shelter” into “stablecoins as infrastructure.”
Several developments in January highlighted this transformation:
– Venture capital and startup financing are increasingly denominated in stablecoins, bypassing slow banking rails.
– Large‑scale minting on networks such as Solana is feeding demand for high‑throughput, low‑fee chains.
– RWA protocols are using stablecoins as the entry and exit point for tokenized bond and credit strategies.
A notable milestone was the decision by prominent startup accelerators and investors to accept stablecoins directly as a funding method. That move effectively recognizes stablecoins as a primary settlement asset in the innovation economy, not merely a speculative trading tool.
This shift from defensive positioning to real‑world, utilitarian use is exactly the kind of structural change that often precedes a durable bull phase.
What “undervaluation” may look like in this cycle
The term “undervaluation” in crypto has traditionally been associated with low price‑to‑earnings proxies, depressed on‑chain activity, or low multiples relative to historical norms. Today, the picture is more nuanced.
Signals suggesting undervaluation now include:
– Record transaction volumes on major chains despite falling token prices
– Rising stablecoin float and velocity, especially on networks that host active DeFi and RWA ecosystems
– All‑time highs in RWA TVL at the same time that valuations of underlying infrastructure tokens are sliding
Put differently, the rails are busier, the money is flowing, and usage is expanding – yet market pricing for many of the core assets does not fully reflect that growth. This mismatch is often where long‑term investors start paying attention.
How this liquidity could power the next risk‑on wave
If and when sentiment flips from fear to appetite for risk, the presence of massive, already‑on‑chain stablecoin liquidity can accelerate price moves:
– Faster capital rotation: Funds held in USDC, USDT, or DAI can be deployed into spot assets or DeFi positions within seconds.
– Leverage and derivatives: Stablecoins are the base collateral for perpetual futures, options, and structured products, amplifying their impact on market direction.
– Bootstrapping new sectors: RWA, restaking, L2 ecosystems, and high‑throughput L1s all rely on ready liquidity to kickstart yields and attract users.
The 10 trillion dollars in January volume does not guarantee a bull market, but it demonstrates that the infrastructure for a rapid upswing is firmly in place. Once macro conditions or narrative catalysts align, this capital can quickly migrate from neutral to aggressive positioning.
Key implications for different types of market participants
The record stablecoin flows have different meanings depending on who you are:
– Traders: High stablecoin volume often precedes volatility. It can signal that big players are repositioning, even if price action looks stagnant in the short term.
– Long‑term investors: Rising stablecoin liquidity combined with growing RWA and chain usage suggests foundational strength, even when charts look weak.
– Builders and founders: The normalization of stablecoins for payments, payroll, and fundraising lowers friction, broadens user reach, and reduces dependency on traditional banking.
– Institutions and treasuries: Stablecoins now offer a credible, operationally efficient way to access yield in DeFi and RWA markets, with growing emphasis on compliance and risk frameworks.
Understanding these dynamics turns the raw number – 10 trillion in volume – from a headline into a roadmap of where crypto might be heading.
Why January’s data may be more bullish than price charts
On the surface, January looked like a classic risk‑off month: Bitcoin down over 10%, many altcoins deeply in the red, and plenty of pessimism in narratives. Underneath, however, several bullish building blocks fell into place:
– Record stablecoin volumes without a corresponding surge in speculative mania
– Measurable expansion in tokenized real‑world assets and on‑chain finance
– Continued growth in usage on scalable chains like Solana despite price drawdowns
– Increasing mainstream acceptance of stablecoins as a settlement and funding layer
Taken together, these trends point to a market that is quietly maturing, even as price action appears choppy. Stablecoins, once seen merely as a bridge between fiat and crypto, are now emerging as the backbone of the digital asset economy.
When the market eventually transitions back into a full risk‑on mode, the depth of this stablecoin liquidity – and the productive use cases it already supports – could be one of the strongest tailwinds for the next sustained rally.
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This text is for informational and educational purposes only and should not be considered financial or investment advice. Trading, buying, or selling digital assets carries a high level of risk, and you should conduct your own research and assess your risk tolerance before making any decisions.