Stablecoin reserves on centralized exchanges have climbed to a new record of $68 billion, even as supply growth has slowed. The latest milestone, recorded on August 22, was driven by $53 billion in USDT holdings and $13 billion in USDC balances.

According to a report by the on-chain aggregator CryptoQuant, this marks a clear break from earlier records. The new total surpasses the previous peak of $59 billion set in February 2022, when BUSD had a larger role. Reserves have since more than doubled from their October 2023 low, boosted by a $28 billion increase after Donald Trump’s election victory.

Cooling Momentum in Stablecoin Liquidity

Rising stablecoin balances are often viewed as a signal of strong market liquidity. They provide the funds necessary for asset purchases, making them a key factor in supporting price activity across digital assets.

However, despite record levels on exchanges, the broader expansion of stablecoin supply has shown signs of slowing. Since November 2024, net additions have softened, with only $1.1 billion in recent inflows compared to $4–$8 billion increases in earlier months.

CryptoQuant notes that this weaker supply expansion reduces the strength of liquidity conditions for crypto markets. In previous cycles, rapid stablecoin growth aligned with notable price rallies, especially in Bitcoin and other major assets.

Consequently, periods of strong inflows typically reflect new capital entering the ecosystem. The current slowdown suggests that less fresh money is moving into stablecoins, which may limit the pace of further market advances.

Tether’s Growth Slows Despite Market Dominance

Tether continues to dominate exchange reserves, but its pace of growth has eased in 2025. Over the last 60 days, USDT supply expanded by $10 billion. This is less than half of the $21 billion increase recorded at the end of 2024.

The slowdown is reflected in the latest figures, which also came in slightly below the 30-day moving average, signaling a deceleration in capital inflows. CryptoQuant interprets this as reduced momentum in one of the market’s largest liquidity sources.

Even so, the report concludes that liquidity remains supportive, though not as strong as in late 2024. Looking ahead, if supply expansion continues to cool, markets may move toward consolidation. Renewed issuance, however, could still trigger another round of bullish momentum.