The stablecoin market has reached a significant milestone, with total supply climbing to a record $314 billion in 2025. Of this amount, approximately $69 billion is currently held on centralized exchanges, according to data from CryptoQuant. This substantial liquidity, much of which remains idle, is generating discussion about the potential for a major market movement as investor sentiment shifts.
Around 22% of the entire stablecoin market is currently parked on exchanges, with Binance holding the lion’s share at $49 billion, or about 71% of all exchange-based stablecoin liquidity. In comparison, OKX follows with around $10 billion, while Bybit manages close to $3 billion. Together, these three exchanges account for approximately 94% of stablecoin reserves on exchanges, which have been described as the largest liquidity pool in cryptocurrency history.
Despite this impressive liquidity, capital inflow into exchanges has been stagnant. In December, around $8 billion in stablecoins exited exchanges, including $3 billion from Bybit and about $2 billion from Binance, while OKX remained stable near the $10 billion mark. Even after these outflows, Binance retains nearly 15% of the global stablecoin supply, underscoring its dominant position.
According to CryptoQuant, the reserves held on exchanges become particularly significant when market sentiment shifts. Exchanges with deeper liquidity pools can deploy capital more swiftly. With over two-thirds of exchange liquidity concentrated on Binance, any resurgence in risk appetite is likely to see initial buying pressure funneled through this major exchange.
Recent analyses by Crazzyblockk indicate a notable decrease in on-chain activity, which has dropped by approximately 40%. Despite this, large investors, often referred to as “whales,” have accumulated around 20,000 BTC, and futures open interest has increased by $2 billion. This situation has set the stage for a potential market movement, although the catalyst for such a change remains elusive.
In recent trading, Bitcoin’s price climbed to around $90,000, reflecting a 2% increase over the past 24 hours before encountering resistance. Meanwhile, Ethereum has also reclaimed the $3,000 mark, and significant altcoins, including BNB and XRP, have experienced short-term rebounds. This uptick indicates a momentary relief across the market, although opinions among analysts vary.
Some experts, such as CW, note that both retail traders and whales are actively buying, particularly on Binance. Conversely, others, like analyst Ali Martinez, caution that this could simply be a temporary rebound due to negative capital flows and ongoing spot ETF outflows. The derivatives market also suggests a layer of caution; high funding rates for Bitcoin futures across 72-hour averages indicate that leverage has not fully reset. Without this cooling period, the market may struggle to sustain a more robust recovery.
While optimism for long-term growth remains, the current stablecoin reserve indicates that capital is poised for action. Nonetheless, prevailing market conditions suggest that patience is key until a clearer catalyst emerges.
