Crypto Market Update: Stablecoins Surge Beyond US$283 Billion as Bitcoin Faces Downward Pressure
August 29, 2025 — The cryptocurrency market witnessed notable developments on Friday as stablecoins reached a record circulation exceeding US$283 billion, while Bitcoin continued to experience a decline amid growing concerns of a market correction.
Bitcoin and Ethereum Price Movements
Bitcoin (BTC) slipped by 3.2%, closing near US$108,292 as of 9:00 p.m. UTC on Friday. The day’s price range saw an opening peak at US$110,473 and a low of US$108,107. Analysts pointed out that Bitcoin’s drop below the US$110,000 level heightened fears of a broader crypto market correction, with liquidation volumes doubling. The price movement coincided with the latest US Federal Reserve inflation data that indicated persistent price pressures.
Market expert Rekt Capital highlighted that Bitcoin must reestablish support above US$114,000 to avoid an extended bear market phase. Adding to the volatility, a significant Bitcoin whale, which recently purchased US$2.5 billion worth of Ethereum, executed another major transfer valued at approximately US$1.1 billion on Friday.
Ethereum (ETH) also took a downward turn, closing 2.3% lower at US$4,345.17 after fluctuating between US$4,279.96 and US$4,389.08 throughout the day.
Altcoins Follow Negative Trend
Key altcoins similarly posted declines:
- Solana (SOL) decreased by 3.5%, trading around US$203.21.
- XRP dropped 4.4%, settling near US$2.82.
- SUI fell 4.8%, priced at US$3.26.
- Cardano (ADA) dipped 3.1%, ending at US$0.8204. Stablecoins Reach All-Time High
Among the brightest spots in cryptocurrency, stablecoins surged past US$282.8 billion in total supply, setting a new market record. This figure represents a 128% rise since January 2025, driven largely by increased demand for dollar-pegged tokens and clearer regulatory frameworks within the United States.
The passage of the GENIUS Act, which establishes federal guidelines for stablecoin issuers, has been a catalyst in fostering growth and legitimacy in the sector. Industry analysts now view stablecoins as a crucial “distribution channel” for US dollars, facilitating cross-border payments and on-chain settlement processes.
Trump-Associated Mining Firm American Bitcoin Prepares for Nasdaq Entry
American Bitcoin, a Bitcoin mining company affiliated with Eric and Donald Trump Jr., is aiming for a Nasdaq listing in September after merging with Gryphon Digital Mining. The firm has raised roughly US$220 million to enhance mining operations and Bitcoin accumulation. As of June, American Bitcoin added 215 BTC to its balance sheet, valued at about US$24 million at current prices.
The company is primarily controlled (80%) by Hut 8 Mining, a publicly traded firm with shares up 29% year-to-date. The Trump brothers are expected to collectively maintain around 19% ownership. CEO Asher Genoot expressed ambitions for American Bitcoin to become a leading US-based mining entity, supported by notable investors including Gemini’s founders Tyler and Cameron Winklevoss.
Eric Trump Highlights US and China Leadership in Bitcoin
At the BTC Asia conference in Hong Kong, Eric Trump praised both China and the United States for pioneering advancements in Bitcoin development and policy. He recognized the Middle East as another rapidly growing crypto adoption hub and underscored Bitcoin’s role in fostering cross-cultural connectivity.
Trump also reflected on his father’s administration’s swift advancements in digital asset regulations compared with the previous decade, describing America as “winning the digital revolution” with strong institutional backing.
21Shares Files Registration for SEI Token ETF
Crypto asset manager 21Shares has filed an S-1 registration statement with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking SEI, the native token of the SEI Network blockchain. The ETF will utilize CF Benchmarks for price indexing and Coinbase Custody Trust Company as custodian.
SEI functions as a layer-1 blockchain focusing on decentralized trading infrastructure. Additionally, 21Shares is considering offering staking benefits for SEI holders but is evaluating potential legal and regulatory risks.
US Department of Commerce to Publish Economic Data on Blockchain
In a landmark move for blockchain adoption in government, the US Department of Commerce announced it will publish official economic data on multiple public blockchains, including Bitcoin, Ethereum, and Avalanche. This initiative aims to provide immutable and transparent data dissemination.
The DOC is partnering with Chainlink and Pyth Network to deliver data feeds such as the Personal Consumption Expenditures Price Index, GDP data, and Real Final Sales metrics. Top exchanges including Coinbase, Gemini, and Kraken have facilitated blockchain transactions for this project.
Aave Protocol Surpasses US$40 Billion in Total Value Locked
Following the DOC’s announcement, decentralized finance (DeFi) lending platform Aave has seen its total value locked (TVL) surge beyond US$40 billion. This growth follows the launch of Aave’s Horizon RWA Market, a real-world application of its ongoing V4 upgrade strategy.
Blockchain analytics firm Nansen also reported significant activity on the Avalanche blockchain, noting over 11.9 million transactions and a 66% increase in active addresses this week.
For more updates on the dynamic cryptocurrency sector, follow @INN_Technology on social media.
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Written by Giann Liguid and Meagen Seatter for Investing News Network (INN)