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The crypto market is showing two sharply contrasting trends at the same time. While stablecoins are expanding at a record pace and quietly overtaking traditional payment rails in usage, altcoins continue to lose ground against Bitcoin, pushing many traders to question whether a major rotation is finally approaching.
Stablecoins have entered a new growth phase in 2025, with total supply climbing more than 33% since the start of the year to exceed $300 billion. This expansion reflects not only increased trading activity but also deeper real-world usage across payments, settlements, and on-chain finance.
Data compiled by Delphi Digital and Artemis shows that monthly stablecoin transaction volumes – once adjusted – now surpass those processed by Visa and PayPal. The shift highlights how dollar-pegged digital assets have evolved from simple trading tools into critical infrastructure for the broader crypto economy.
📈 Stablecoin Boom
Total stablecoin supply has surged 33% this year to over $304B.
A major milestone — monthly adjusted volumes are now exceeding Visa and PayPal, per Delphi Digital.
This signals accelerating adoption and growing real-world usage across the crypto economy. pic.twitter.com/YS22JZxkWp
— Crypto Patel (@CryptoPatel) December 18, 2025
USDT and USDC remain the dominant players, but newer entrants such as PYUSD, DAI, and tokenized money market products are contributing to the overall rise. The steady inflow suggests that capital is not leaving crypto entirely during periods of market uncertainty, but instead parking in on-chain dollars.
Altcoins Continue to Bleed Against Bitcoin
While stablecoins are booming, altcoins are telling a very different story. Since 2022, the majority of alternative cryptocurrencies have steadily lost value relative to Bitcoin, a trend that has lasted far longer than many expected.
Are #Altcoins Due for a Massive Comeback Against #Bitcoin This cycle ? 📈💥
All throughout this period going from 2022 till the present day, Alts have been loosing value against $BTC.
What's interesting to see is that this trend has been going on for more than was was expected.… pic.twitter.com/3su2P9WqYc
— Bitcoinsensus (@Bitcoinsensus) December 18, 2025
Market data shows that altcoin pairs against BTC remain under heavy pressure, even as Bitcoin itself trades near cycle highs around the $88,000-$89,000 range. This prolonged underperformance has compressed valuations across the sector, pushing many assets to levels not seen since the previous bear market.
Oversold Conditions Raise Comeback Questions
Despite the persistent weakness, analysts are beginning to point out that altcoins are now extremely oversold on both USD and BTC pairs. Long-term charts indicate that many altcoin indices are sitting at major historical support zones, levels that have previously preceded sharp reversals.
Technical structures suggest that downside momentum is fading, even if price confirmation has yet to arrive. The extended duration of Bitcoin dominance has increased the probability that any shift in market sentiment could trigger a rapid and aggressive response from altcoins.
A Market at an Inflection Point
The contrast between surging stablecoin adoption and depressed altcoin valuations paints a picture of a market in transition. Capital appears cautious but not absent, waiting on clearer signals before rotating back into higher-risk assets.
If Bitcoin continues to stabilize near its highs and macro conditions remain supportive, the groundwork may already be forming for a delayed but powerful altcoin rebound. However, traders remain aware that conditions can change quickly, and patience may be required before the next phase of the cycle truly begins.