Stablecoin Supply Surpasses $221 Billion

The total stablecoin supply has surpassed $221 billion, accounting for more than 1% of the U.S. dollar M2 money supply.

Stablecoins, once a niche sector, now constitute over 1% of the U.S. dollar M2—a broad measure of money, including cash and deposits. The market has reached $221 billion after adding nearly $100 billion since 2024, according to data compiled by analysts at OurNetwork.

Tether’s (USDT) market share has dropped from 73% to 64%, while Circle’s (USDC) has increased from 20% to 25%. Together, these two stablecoins make up 89% of the total market share, but new players like Ethena’s USDe and Usual’s USD0 are also emerging as significant competitors.

Stablecoins’ Combined Market Cap

Synthetic dollar USDe has added $5.9 billion, while USD0 has grown by $1.1 billion. FDUSD, which initially gained traction through promotions, has lost market share as competition intensified following the end of these incentives.

Tether’s Paolo Ardoino on Stablecoin Regulations

Per OurNetwork, USDC’s recent growth has been primarily fueled by adoption beyond Ethereum’s mainnet. Analysts note that the issuer saw explosive growth—over $7.7 billion worth of USDC on Solana, likely driven by a surge in meme coin trading. Additionally, USDC has gained on Ethereum’s layer-2 solutions like Coinbase’s Base and Arbitrum.

Circle CEO Jeremy Allaire aims to strengthen the company’s U.S. presence, advocating for registration requirements for dollar-pegged token issuers in the country. He believes there shouldn’t be a free pass for stablecoin issuers in the U.S., which could hinder Tether’s expansion after relocating its headquarters to El Salvador.

Related Article

Circle’s USDC Hits $56B High – recovers from 2023 bank run.