The stablecoin market has reached a new milestone, with its total market value hitting an all-time high of $227.4 billion.
This is a significant jump from $132 billion in January 2024, showing the increasing importance of stablecoins in the cryptocurrency world.
More investors and institutions are using stablecoins, not just for trading but also as a store of value and a medium of exchange.
Tether and USDC lead the market
Tether ($USDT) continues to dominate the stablecoin market with a market capitalisation of $143 billion, making up 63% of the total market. $USDT has held its position as the largest stablecoin for years, and its supply keeps increasing.
USD Coin ($USDC) is the second-largest stablecoin, with a market capitalisation of $57 billion. $USDC has been growing at a faster rate than Tether, although it still has a long way to go before catching up.
In November 2024, there was $35 billion in $USDC in circulation, and by March 2025, it had grown 66% to $58 billion. In comparison, Tether only grew by 18%, rising from $121 billion to $143 billion.
A new competitor, Ethena USDe ($USDE), has become the third-largest stablecoin, reaching a market cap of $5.45 billion.
While still much smaller than $USDT and $USDC, its rapid growth shows that there is room for new players in the stablecoin market.
Solana’s stablecoin market booms
Among all blockchains, Solana has seen the fastest stablecoin growth. In December 2024, Solana’s stablecoin market cap was $4 billion, but by 11 March, 2025, it had jumped to $11.7 billion.
This tripling of stablecoin supply in just a few months highlights Solana’s growing role in the crypto space.
A major factor in this growth is Circle, the issuer of $USDC, which has been actively expanding its presence on Solana.
In 2025 alone, Circle minted $8 billion worth of $USDC on the Solana blockchain. This shows that developers and investors see Solana as a strong competitor to Ethereum when it comes to stablecoins.
Despite Solana’s rapid rise, Ethereum still remains the most dominant blockchain for stablecoins, hosting the largest share of $USDT, $USDC, and other major stablecoins.
While stablecoin supply has increased, trading activity on decentralised exchanges (DEXs) has dropped. In January 2025, DEX trading volumes were at $572 billion, but by February, they had fallen to $378 billion.
This decline suggests that investors are moving capital out of Bitcoin and altcoins and into stablecoins, possibly due to market uncertainty. In recent weeks, Bitcoin’s price has dropped below the critical $80,000 level, causing many traders to become cautious.
One reason for this shift could be the growing number of financial institutions entering the stablecoin market. With banks, payment companies, and major investors backing stablecoins, they are becoming a safer option in the volatile crypto market.
Regulatory changes and institutional adoption
The rise in stablecoin market capitalisation comes at a time when the US government is becoming more involved in crypto regulation.
President Donald Trump has taken a pro-crypto stance, which has encouraged more companies to enter the stablecoin space.
Major financial institutions such as Bank of America, Standard Chartered, PayPal, Revolut, and Stripe are now working with stablecoins.
Bank of America CEO, Bryan Moynihan, recently stated that the bank is ready to enter the stablecoin market if Congress passes supportive legislation.
PayPal has also been expanding its $PYUSD stablecoin, which is now being rolled out to merchants for business-to-business payments.
Paxos, a US-based stablecoin issuer, has partnered with Standard Chartered to support its $USDG and $USDL stablecoins.
At the White House Crypto Summit on 7 March, Treasury Secretary, Scott Bessant, said, “We are going to keep the US dollar the dominant reserve currency in the world, and we will use stablecoins to do that”. This statement shows that the government sees stablecoins as a key part of the financial system.
However, not all stablecoin issuers are benefiting from the regulatory environment. Tether is facing challenges in Europe, where new Markets in Crypto-Assets (MiCA) cryptocurrency regulations have caused exchanges like Binance and Coinbase to delist $USDT.
In the US, the GENIUS Act, a proposed stablecoin regulation law, could make it harder for stablecoin issuers that are not based in the US.
Despite these challenges, the stablecoin market is expected to continue growing, especially as more institutions and governments explore stablecoin use for global trade and payments.
Inflation and Bitcoin price volatility
Recent economic data shows that inflation is slowing down in the US Consumer prices rose by 0.2% in February, bringing annual inflation down to 2.8%, compared to 3% in January.
Bitcoin ($BTC) initially responded positively to this news, spiking above $84,000, but its price remains unstable. Over the past few weeks, Bitcoin has fluctuated, at one point falling to $76,811, before recovering to $79,500.
Crypto traders have faced heavy liquidations due to the market’s volatility. In the last 24 hours alone, 192,960 traders were liquidated, with total losses reaching $616.40 million. The largest single liquidation order, worth $60 million, was recorded on HTX (formerly Huobi).
Bitcoin suffered the most liquidations, with over $251 million worth of $BTC positions being wiped out. Short traders lost $155 million, while long traders lost $95.7 million.
Ethereum ($ETH) also experienced a major drop, with $125.11 million in liquidations in the past 24 hours. Its price fell 9% on 11 March, dropping to $1,888. Over the past month, Ethereum’s price has fallen 30%, and in the last three months, it has dropped 50%.
Analyst, Ali Martinez, warned that Ethereum could be at risk of further declines, saying that if it breaks below a key support level, it could fall as low as $1,250.
Potential Bitcoin rally
Despite recent losses, some analysts believe Bitcoin could see a strong price recovery in the coming months. One possible factor that could boost Bitcoin is the Bitcoin Reserve Bill, which is being considered in the US and other regions.
In Texas, lawmakers have proposed a bill that would allow the state to accept Bitcoin for taxes, fees, and donations. If approved, this could encourage more government adoption of Bitcoin, potentially increasing demand.
Another factor that could drive Bitcoin’s price higher is the growing institutional interest in Bitcoin exchange-traded funds (ETFs).
However, recent market downturns have led to outflows from Bitcoin ETFs, which have contributed to Bitcoin’s price drop.
For now, the stablecoin market continues to grow rapidly, and its role in the financial system is becoming more significant.
As governments, financial institutions, and investors become more involved, stablecoins could play a key role in shaping the future of digital payments.
With Bitcoin and Ethereum facing price pressure, many investors are turning to stablecoins as a safe haven, while still keeping an eye on potential market opportunities.
