The 2013 crypto boom, when Bitcoin hit $266, marked a pivotal year for the market. That year, Ethereum was conceptualized as a global computational platform, while other cryptocurrencies remained in their infancy. The number of coins and tokens rapidly surged from approximately 70 in 2013 to over 500 in 2014. Fast-forward to 2025, and there are now more than 9,000 cryptocurrencies in circulation, with even more expected to emerge.
Initially, cryptocurrencies like Bitcoin were envisioned as tools to redistribute wealth across nations and communities. Many early crypto pioneers saw them as a replacement for the traditional financial system. However, there’s an essential nuance: before wealth can be distributed, it must first be accumulated. In today’s world, wealth is measured in US dollars, whose strength remains central to the global financial system.
Businesses, enjoying more flexibility than governments, began accepting cryptocurrency payments from the outset, even before digital currencies had established reliable dollar-based value benchmarks. In 2013, an estimated 1,000 businesses worldwide accepted crypto payments. By 2025, the number of PayPal merchants alone accepting crypto has grown to more than 26 million, largely thanks to the adoption of stablecoins.
Every year in the crypto industry is touted as pivotal, groundbreaking, or transformative, and 2014 stood out with the introduction of BitUSD, the first digitalized dollar. BitUSD laid the groundwork for the mass adoption of crypto as a payment method. However, its backing by cryptocurrencies was less than ideal due to the volatility and the rapid emergence and obsolescence of coins and tokens.
Tether (USDT) was one of the pioneers in digitalizing national currencies, backing its stablecoin with a combination of US and non-US Treasury Bills. Issued across multiple blockchains, Tether’s USDT is also backed by precious metals, Bitcoin, secured loans, corporate bonds, and other investments. As of 2025, approximately $140 billion USDT is in circulation, with a 1:1 peg to the USD. It’s worth noting that, Tether often prints billions of USDT to inject liquidity into the market ahead of Bitcoin’s record-breaking price hikes.
While Tether dominates the stablecoin market, it is far from the only player. Circle, in collaboration with Coinbase, issues USDC, the second most widely used stablecoin, with $52 billion in circulation. USDC is backed 1:1 by physical US dollars, making it more attractive for some investors. That said, USDC faced a significant challenge in 2023 when Circle lost $3.3 billion in deposits due to the collapse of Silicon Valley Bank. This event temporarily de-pegged USDC from the dollar, with its value dropping to $0.74. Fortunately, USDC quickly recovered, and its peg to the dollar has remained stable since.
The collapse of Silicon Valley Bank in 2023 sent shockwaves through the US banking system, causing the US Dollar Index to drop from 105 in March to 99.75 in July — its lowest level since the COVID-19 pandemic. A swift response by the US Treasury, Federal Reserve, and FDIC, which guaranteed the repayment of all deposits, including those exceeding $250,000, helped avert a broader financial crisis.
Donald Trump promised a “golden age” for the US economy, particularly the crypto industry. However, during his inaugural speech, he did not mention crypto, leaving many within the community uncertain about his stance. Bitcoin is increasingly viewed by investors as a hedge against market volatility. President Trump’s pro-crypto rhetoric, including plans to acquire Bitcoin and deregulate the crypto space, raises an important question: Could this position threaten the US dollar, particularly given the negative correlation between the DXY and Bitcoin?
