Milestone and Growth Pace
Stablecoins crossed $300 billion in market capitalization for the first time on Oct. 3, 2025, according to DefiLlama. The sector has grown 46.8% year to date, setting it on pace to exceed last year’s growth rate of 58% if inflows continue. To replicate 2024’s advance, stablecoins would need to add about $23 billion more by year-end. The market added $40 billion in the third quarter alone, the strongest on record.
The growth is modest compared with early years: the market expanded by 876% in 2019, then by 568% in 2020 and 494% in 2021 before contracting in 2022 and 2023.
Winners in 2025: USDT, USDC and USDe
Tether’s USDT and Circle’s USDC remain the dominant issuers, while Ethena Labs’ USDe has been the breakout token of 2025. USDe’s supply grew from about $6 billion in January to nearly $15 billion by October, a surge of more than 150% according to RWA.xyz. The yield-bearing design has attracted investors despite ongoing debates over its hedging model and resilience in volatile markets.
Ethereum remains the largest base network, with $171 billion in stablecoins outstanding. Solana has seen the fastest growth, with supply climbing nearly 70% this year to $13.7 billion. Arbitrum and Aptos also gained share, with growth of about 70% and 96%, respectively. Tron continues to anchor low-fee transfers with more than $76 billion outstanding.
Record Quarter of Net Creations
The third quarter added between $45.6 billion and $46.0 billion in net stablecoin creations, a 324% increase from the prior quarter’s $10.8 billion. USDT led with $19.6 billion in new supply, followed by USDC with $12.3 billion and USDe with $9 billion. PayPal’s PYUSD and Sky’s USDS added $1.4 billion and $1.3 billion, respectively. Net creations measure minted tokens minus redemptions and are considered the cleanest gauge of capital inflows.
Despite the new supply, activity metrics show a lag. Active stablecoin addresses dropped 23% in the past month and transfer volume fell 11%. Analysts caution that much of the inflow may represent cash parked onchain rather than funds circulating through payments or DeFi.
Policy and Market Drivers
A mix of regulatory clarity, yield dynamics and infrastructure upgrades is fueling the rally. In the U.S., the GENIUS Act introduced the first federal framework for payment stablecoins, while Europe’s MiCA rules took effect in June. Clearer rules have given issuers confidence to expand.
Yield opportunities also played a role. Tokenized U.S. Treasuries grew from about $4 billion in early 2025 to more than $7 billion by midyear, pulling additional capital onchain. At the same time, exchanges and payment platforms broadened integration, while Ethereum layer-2 networks lowered costs and boosted transaction throughput.
Market dynamics also contributed. Investors parked funds in stablecoins during periods of volatility, creating what some analysts described as “dry powder” for future deployment into risk assets.
Outlook: Competition and Regulation Ahead
Heading into the final quarter, attention will focus on whether USDC can continue narrowing the gap with USDT and whether USDe can maintain growth without stability lapses. Inflows will also be influenced by chain-level competition among Ethereum, Tron and Solana, with market share shifts being closely tracked.
Phil George, founder of EarnOS, said that “supply has doubled in two years and will probably double again in one year from now,” projecting $100 trillion in transaction volume in 2026 and a doubling of stablecoin supply to $600 billion. Aryan Sheikhalian, head of research at CMT Digital, said $500 billion would mark mainstream integration, with $1 trillion likely by decade’s end as stablecoins enter corporate treasuries and retail payments.
For now, the sector’s momentum underscores stablecoins’ role as crypto’s base layer of liquidity. The milestone may matter less than whether $300 billion in supply translates into activity that endures beyond this bull cycle.