Crypto Market Update: Stablecoins Surpass US$283 Billion Amid Bitcoin’s Continued Decline
August 29, 2025 — By Giann Liguid and Meagen Seatter
As of Friday evening (August 29), the cryptocurrency market saw significant developments, with stablecoins hitting a new circulation milestone while Bitcoin continued its recent downward trend. This overview summarizes the key movements in major tokens, the stablecoin market’s expanding role, and notable industry news shaping the crypto landscape.
Bitcoin and Ethereum Price Snapshot
Bitcoin (BTC) experienced a notable downturn, trading at approximately US$108,292—a 3.2% decline within the last 24 hours. The day’s price fluctuated between a high of US$110,473 and a low of US$108,107. The dip below the US$110,000 mark stirred concerns of a broader crypto market correction, especially as liquidations doubled. Analysts pointed to persistent inflationary pressures highlighted by the US Federal Reserve’s preferred gauge, which has weighed on investor sentiment.
Market expert Rekt Capital emphasized that Bitcoin must reclaim US$114,000 to stave off an extended correction or potential bear market phase. Adding to volatility, a major Bitcoin whale, recently reactivated after purchasing US$2.5 billion worth of Ethereum, made another substantial move by transferring US$1.1 billion on Friday.
Ether (ETH), Bitcoin’s leading altcoin, also saw declines, priced at US$4,345.17, down 2.3% in the last 24 hours. Ether’s trading range was between US$4,389.08 at its peak and US$4,279.96 at the day’s lowest point.
Altcoins Also Face Downward Pressure
Several altcoins followed the bearish trend:
- Solana (SOL) traded at US$203.21, down 3.5%.
- XRP retreated to US$2.82, a 4.4% loss.
- SUI (Sui) slipped 4.8%, closing near US$3.26.
- Cardano (ADA) declined by 3.1% to US$0.8204. —
Stablecoins Surge Past US$283 Billion: A New Milestone
Amidst broader market jitters, the stablecoin market reached an all-time high, with total supply exceeding US$282.8 billion, according to data from DefiLlama. This represents a remarkable 128% increase since January 2025. The growth is attributed to enhanced demand for dollar-pegged tokens and clearer regulatory frameworks in the United States, notably following the passage of the GENIUS Act.
This legislation introduces federal guidelines for stablecoin issuers, which industry analysts believe will catalyze further sector growth. Beyond simply serving as a hedge against volatility, stablecoins have increasingly become vital “distribution channels” for US dollars, enabling streamlined cross-border payments and decentralized on-chain settlements.
Trump-Backed Mining Firm American Bitcoin Sets Nasdaq Debut
A major highlight in industry news is American Bitcoin, a mining company supported by Eric Trump and Donald Trump Jr., gearing up for a Nasdaq listing scheduled for September. The firm recently merged with Gryphon Digital Mining and has raised US$220 million to bolster its mining capacity and Bitcoin holdings.
American Bitcoin is primarily owned by Hut 8 Mining (TSX:HUT, NASDAQ:HUT), which holds an 80% stake, while the Trump brothers together are expected to control approximately 19%. As of June, the company’s Bitcoin reserves stood at 215 BTC, valued at about US$24 million amid recent prices near US$112,000 per Bitcoin.
CEO Asher Genoot expressed ambitions for American Bitcoin to become one of the predominant mining companies in the US, supported by prominent investors like Gemini’s Winklevoss twins. Hut 8’s shares have surged 29% year-to-date, and American Bitcoin would rank among the top 30 publicly traded Bitcoin holders in the country upon its listing.
Eric Trump Praises US and China’s Crypto Leadership
Speaking at the BTC Asia conference in Hong Kong, Eric Trump commended both the United States and China for their leading roles in steering Bitcoin’s future, highlighting the rapid crypto adoption witnessed in the Middle East as well. He also credited his father’s administration for making significant advancements in digital asset policy, accelerating progress in just seven months beyond the pace of the previous decade.
Trump described America as “winning the digital revolution,” buoyed by support from Wall Street, sovereign wealth funds, and retirement investors. While broader trade topics will dominate upcoming US-China discussions, he expressed openness to addressing Bitcoin-related issues.
21Shares Files for SEI-Tracking ETF
Crypto asset manager 21Shares has taken a key step by submitting an S-1 registration with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking SEI, the native token of the SEI blockchain network. The ETF aims to utilize pricing data from CF Benchmarks, with Coinbase Custody Trust Company proposed as the custodian.
SEI, a layer-1 blockchain launched in 2023, focuses on decentralized exchange infrastructure. 21Shares is also investigating adding staking features for SEI within the ETF, while closely monitoring regulatory and tax implications.
US Department of Commerce to Publish Economic Data On-Chain
In a pioneering initiative, the US Department of Commerce (DOC) announced plans to publish official economic data on at least nine public blockchains, including Bitcoin, Ethereum, and Avalanche. Partnering with blockchain oracles Chainlink and Pyth Network, the DOC aims to ensure that critical economic indicators such as GDP and price indexes are immutable and tamper-proof.
The move represents a notable endorsement of blockchain’s potential to enhance transparency and reliability of government data dissemination. Major exchanges such as Coinbase, Gemini, and Kraken facilitated parts of the initiative.
Aave Protocol’s Total Value Locked Soars Past US$40 Billion
Decentralized finance protocol Aave reported a surge in its total value locked (TVL), surpassing US$40 billion following the launch of its Horizon RWA Market, the first application under its ongoing version 4 upgrade strategy. This growth reflects increasing investor confidence.
Additionally, crypto intelligence platform Nansen highlighted a sharp rise in activity on the Avalanche network, recording over 11.9 million transactions and a 66% increase in active addresses over the week.
Conclusion
While major cryptocurrencies like Bitcoin and Ethereum face selling pressure, the stablecoin sector’s explosive growth and institutional adoption continue to demonstrate blockchain’s evolving role in the global financial system. Meanwhile, regulatory clarity, innovative financial products such as SEI ETFs, and government data on-chain initiatives point toward broader mainstream integration in the coming months.
Stay connected with INN Technology for up-to-the-minute updates on blockchain, cryptocurrency markets, and investment insights.
Disclosure: The authors hold no direct investment interest in any companies mentioned.