The total market capitalization of stablecoins has soaring to a new all‑time high of over $300 billion. This milestone underscores the increasing demand and adoption of stablecoins within the cryptocurrency ecosystem.
Data from DeFiLlama reveals that this current market capitalization stands at $301 billion, a 2 % increase over the past seven days.
Tether dominates the Stablecoin Landscape
Tether’s USDT continues to dominate the stablecoin landscape, leading the charge in this upward trajectory.
Tether dominates with a market cap of $176 billion, which is a 58 % share of the total stablecoin market. This growth shows the stablecoin’s widespread use in trading platforms, decentralized finance protocols, and cross‑border payment solutions.
Tether’s growth isn’t just limited to its flagship product. The company recently announced plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED). Likewise, the company affirmed its ambitious plans to double its workforce by mid‑2025.
Following closely is Circle’s USDC, the second‑largest stablecoin, with a market value of $74 billion.
Similarly, Ethena’s USDe, a rising algorithmic stablecoin, also climbed to $14.8 billion market capitalization. Moreso, MakerDAO’s DAI, one of the first decentralized stablecoins, has a market cap of $5 billion. This shows that users continue to trust and adopt it in the DeFi space.
Stablecoin Gain Ground in Traditional Finance
Last month, the U.S. Commodity Futures Trading Commission (CFTC) started exploring a proposal that would allow tokenized assets, including popular stablecoins, to be used as collateral in a regulated derivatives market.
Acting Chair Caroline Pham described collateral management as the “killer app” for stablecoins. This underscores the agency’s interest in bringing digital assets into mainstream financial infrastructure.
If approved, the plan would enable stablecoins to operate alongside traditional collateral such as cash or U.S. Treasury securities in derivatives trading. Earlier this year, Congress passed the GENIUS Act, a law aimed at establishing clear rules for payment stablecoins.
Stablecoin Spur Competition, Not Collapse
Matt Hougan recently urged US banks to focus on offering better rewards to retain their customers rather than blaming stablecoins for potential threats to their profits. The chief investment officer’s remark follows concerns that yield‑bearing stablecoins could prompt significant bank withdrawals.
US banks have since lobbied Congress to impose stricter regulations on stablecoin yields, citing risks to the traditional banking model. In response to these claims, Hougan dismissed “first‑order thinking,” saying that fears about stablecoins undermining lending markets are misguided.
Stablecoins, Hougan explained, empower individual savers by offering better returns. It also connects individuals directly to borrowers through decentralized finance (DeFi) platforms.