The total supply of stablecoins increased by $2.19 billion last week, according to the weekly report published by on-chain analytics account @lookonchain. The growth reflected renewed activity in the crypto market and coincided with a sharp rebound in trading volumes across decentralized exchanges (DEXs).

DEX Volumes Rebound

Spot trading volume on decentralized exchanges rebounded by 91.62% week-over-week, while perpetual trading volume jumped by 104.06%, the report showed. DEXs allow traders to swap tokens directly from their own wallets through automated liquidity pools rather than depositing funds with an intermediary, while perpetuals are leveraged derivatives contracts with no expiry date that account for a large share of crypto derivatives trading. Taken together, the figures suggest that traders are re-engaging with the market, a development the report tied to positive sentiment surrounding institutional investments in digital assets.

Institutional Accumulation

Over the same period, four public companies collectively added 1,371 BTC — worth approximately $107.96 million — to their holdings. The report read the continued accumulation as an indication that institutional players remain optimistic about Bitcoin's future. Corporate Bitcoin treasuries have become a recurring feature of the market since software firm MicroStrategy — since renamed Strategy — began moving its balance sheet into Bitcoin in 2020, making periodic disclosures of corporate purchases a routine data point for market observers.

Protocol Revenue

Among individual protocols, Ostium — a decentralized platform for on-chain perpetual trading of real-world assets such as foreign exchange and commodities — led revenue growth over the week, recording an increase of 6,435% in protocol revenue.

Market Context

The broader crypto market is currently showing fluctuating momentum, with varying signals across major assets. Bitcoin's dominance — its share of total cryptocurrency market capitalization — is often watched as a gauge of whether capital is concentrated in the largest asset or rotating into smaller tokens. The rise in stablecoin supply, alongside the recovery in trading volumes, was described as pointing to a potentially bullish phase, with attention turning to how these dynamics interact with Bitcoin's dominance and overall market cycles as institutional activity continues to influence sentiment.

Stablecoins are digital assets designed to maintain a stable value against fiat currencies, led by Tether (USDT) and Circle's USDC, and they serve as the primary trading pairs and collateral across crypto venues. The sector has operated under clearer rules in the United States since the GENIUS Act, signed into law in July 2025, established a federal framework for payment stablecoins. The recent increase in stablecoin supply suggests growing demand for liquidity as traders look to capitalize on market opportunities.

What to Watch

Key metrics flagged for monitoring include the continued performance of stablecoins and their impact on Bitcoin dominance, as well as whether the rebound in trading volumes proves durable. The report noted that the volume recovery may indicate a longer-term positive trend, while cautioning that market conditions can change rapidly and that potential risks remain. A sustained increase in stablecoin supply could be accompanied by further institutional participation, shaping the overall market landscape.

This article is for informational purposes only and does not constitute financial advice.

Source: Coinfomania