USDT Leads Stablecoin Surge as Market Liquidity Hits $220 Billion Milestone
The cryptocurrency market has witnessed a historic surge in stablecoin liquidity, with total reserves reaching an all-time high of $220 billion. This growth is primarily driven by the expansion of Tether (USDT) and USD Coin (USDC), both of which have recorded their most significant weekly supply increases since February 2025. As of May 5, 2025, this development signals robust demand for stable assets amid evolving market conditions, reinforcing USDT’s dominance in the stablecoin ecosystem.
Stablecoin Liquidity Hits Record $220 Billion as USDT and USDC Market Caps Expand
Stablecoin reserves across the crypto ecosystem have surged to an unprecedented $220 billion, according to CryptoQuant’s latest weekly report. The liquidity explosion stems from robust growth in Tether (USDT) and USD Coin (USDC), with both stablecoins posting their strongest weekly supply expansion since February.
Tether’s market capitalization grew by $2.5 billion last week while Circle’s USDC added $1.2 billion. The 30-day figures reveal even more dramatic growth—USDT’s supply increased by $5.3 billion and USDC by $6 billion during the period. Both are now trading above their 30-day moving averages, a pattern historically associated with heightened market liquidity.
Analysts view the stablecoin surge as a bullish signal for Bitcoin and broader crypto markets. The influx of dollar-pegged tokens typically precedes capital deployment into risk assets, suggesting potential upward pressure on BTC prices in coming weeks.
Tether CEO Unveils Decentralized AI Platform Leveraging Bitcoin and USDT
Tether CEO Paolo Ardoino revealed plans for an open-source AI runtime solution on May 5, marking the stablecoin issuer’s ambitious push into artificial intelligence. The decentralized system will operate without API keys or centralized failure points, designed to adapt across hardware platforms.
The project integrates Tether’s Wallet Development Kit, enabling native payments in both USDT and Bitcoin. Ardoino’s announcement positions Tether at the intersection of two disruptive technologies: cryptocurrency and AI. This move follows growing institutional interest in blockchain-based AI solutions as both sectors experience rapid maturation.
Tether Enters AI Sector with Decentralized Platform Tether.ai
Tether, the issuer of the USDT stablecoin, has announced the launch of Tether.ai—a decentralized network powered by billions of AI agents. The initiative marks a strategic pivot, merging blockchain, artificial intelligence, and decentralization to create a more accessible and user-centric ecosystem.
CEO Paolo Ardoino revealed three privacy-focused AI tools under development: an AI translator, a voice assistant, and a Bitcoin wallet assistant. These tools, part of the Tether Data project, emphasize local data processing, user control, and privacy-first hashing techniques.
