Stablecoins' January trading volume surpasses $10 trillion, on-chain liquidity hints at the starting point of the next crypto market cycle?

Despite the crypto market sentiment remaining under pressure in January 2026, with Bitcoin (BTC) experiencing a monthly return of -10.17%, marking the worst start since 2022, stablecoins have been expanding against the trend. The latest on-chain data shows that in January, the total trading volume of stablecoins first surpassed $10 trillion, setting a new record and signaling liquidity trends that are completely different from price movements.

In comparison, the total stablecoin trading volume for the entire year of 2025 was about $33 trillion, with nearly one-third contributed by just January 2026. Among them, Circle’s USDC alone had a monthly trading volume of up to $8.4 trillion; Tether’s USDT increased by approximately $1.8 trillion; DAI also contributed about $58.1 billion. This phenomenon indicates that funds are not leaving the market but are instead circulating on-chain in a more “neutral” form.

Even more noteworthy is that stablecoin liquidity is transforming into real-world applications. In January, Circle minted approximately $10.5 billion worth of USDC on the Solana network, with total lock value related to RWA increasing by 8% to $1.19 billion. Looking at the entire RWA sector, net capital inflow for the month was about $3.7 billion, pushing the total TVL to a new high of $24.19 billion, making it one of the most expanding sectors in the crypto space.

Against this backdrop, on-chain activity on Solana has significantly heated up, with January trading volume reaching $490 billion, ranking in the top four among blockchain performances for the month. Although SOL’s price still declined by 16%, structural demand has already shown signs of emergence. Meanwhile, Y Combinator’s policy allowing the use of stablecoins for financing further reinforces stablecoins’ role in real-world payments and settlements.

From a safe haven to practical utility, stablecoins are becoming a key bridge connecting traditional finance with the crypto world. The divergence between market prices and on-chain liquidity may be hinting that current assets are temporarily undervalued. When risk appetite recovers, these funds accumulated within the system could become a significant driver for the next market rally.