The stablecoin market landscape is changing: USDC's share has doubled, and the newcomer USDe has emerged.

Original text: Artemis, Dune

Compiled by: Yuliya, PANews

Stablecoins are reshaping the global financial system at an unprecedented pace. According to the "2025 Stablecoin Status" report jointly released by Dune and Artemis, the stablecoin market has experienced significant growth over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and a continuous increase in on-chain trading activity.

market size and growth trends

By February 2025, the supply of stablecoins had reached $214 billion, with an annual transaction volume of up to $35 trillion, twice the annual transaction volume of Visa. Market activity has risen accordingly, with the number of active on-chain addresses growing by 53%, surpassing 30 million. Institutional funds are flowing in on a large scale, driving the deep integration of traditional finance (TradFi) and the crypto market.

Changes in the dominance of USDC and USDT

With the promotion of compliance processes and market strategies, USDC and USDT still dominate, but there are subtle changes in market share.

• USDC market capitalization has doubled to $56 billion, primarily due to the approval of MiCA and DIFC regulations, the addition of important strategic partners such as Stripe and MoneyGram, and the rapid expansion of the global market.
• USDT total market capitalization has increased to 146 billion USD, still the largest stablecoin by market cap, but its market share has declined, institutional adoption has decreased, and the focus is gradually shifting towards the P2P remittance market, consolidating its position in the global payment sector.

The rise of decentralized stablecoins

In the decentralized finance (DeFi) ecosystem, the influence of decentralized stablecoins has significantly increased, with several emerging projects achieving breakthrough growth.

• USDe (Ethena Labs): Market capitalization surged from $146 million to $6.2 billion, becoming the third largest stablecoin in the market. The key to this growth lies in its innovative yield strategy and Delta-neutral hedging mechanism.
• USDS (MakerDAO): The MakerDAO brand has been rebranded to Sky, and a compliance-friendly USDS has been launched, with a market value reaching $2.6 billion by February 2025. This adjustment enhances its competitiveness in the decentralized stablecoin market.

Capital Flow and Industry Distribution

The liquidity trends of stablecoins reflect the positioning and competitiveness of different public chains in the market:

• Ethereum remains the primary issuance platform for stablecoins, accounting for 55% of the supply share.
• Base and Solana have experienced rapid growth in trading volume, driven by the DeFi and meme coin markets, and have become important on-chain ecosystems for stablecoin capital circulation. TRON continues to be at the heart of the global P2P payments and cross-border remittances market, especially in emerging markets, where stablecoins are widely used for payments and savings.

Most stablecoin liquidity is primarily concentrated in centralized exchanges (CEX), with trading volume mainly driven by DeFi (DEX, lending, yield farming), reflecting the efficient flow and innovation of funds.

Core Functions and Future Development

Stablecoins have become a key infrastructure in the crypto market, while also driving innovation in the traditional financial sector. Industry experts are optimistic about the future development of stablecoins:

"Stablecoins are the lifeline of the crypto market and the superconductor of the financial system. They open up new markets and financial opportunities, driving innovation that was previously difficult to access."

——Dragonfly General Partner Rob Hadick

"The advantages of stablecoins in cross-border payments are significant. We hope Base will support more local currency stablecoins, allowing global users to trade on-chain with familiar currencies, thereby increasing the adoption of blockchain technology."

——Base Product Manager Neodaoist

"The new generation of stablecoins must possess market resilience. The core of USDe is a yield-backed stability mechanism that ensures users receive a reliable USD alternative."

——Ethena Labs Research Head Conor Ryder

"The flow of stablecoins depends on the quality of infrastructure—low cost, fast transactions, and market demand. On Solana, the demand for liquidity and instant settlement for Meme coin trading pairs is extremely high, making stablecoins an indispensable part."

• Andrew Hong, founder of Herd and data analytics expert

"TRON has become the preferred blockchain for stablecoin trading, with daily transaction volumes reaching billions of dollars. USDT on TRON has driven real economic activity, especially in emerging markets, and has become a key tool for payments and savings."

——TRON DAO community spokesperson Sam Elfarra