Stablecoin market cap hits record high of $226B, indicating capital rotation
The stablecoin market cap has reached a new all-time high of $226.8 billion, up from $132 billion in January 2024.
According to data from DefiLlama, $2.43 billion in stablecoins was added in the past week alone. With a market value of $143 billion, Tether (USDT) is still the largest stablecoin, accounting for 63% of the market. USDT’s market capitalization is roughly three times that of USD Coin (USDC), which has a market capitalization of $57 billion.
Notably, Ethena USDe (USDE) has surged to become the third-largest stablecoin, now boasting a $5.45 billion market capitalization. Solana (SOL) has seen the most significant stablecoin growth among all blockchains, rising from $4 billion in December to $11.7 billion as of Mar. 11.
Circle alone has minted $8 billion USDC on Solana so far in 2025, with $6 billion issued in January and another $2 billion in February, as per Spot On Chain data. Despite the increase in stablecoins, decentralized exchange trading volumes have decreased, falling from $572 billion in January to $378 billion in February.
The broader crypto market is also experiencing a downturn, with Bitcoin slipping below the critical $80,000 psychological level. Rising stablecoin supply amid a market downturn signals capital rotation from Bitcoin and altcoins to stablecoins, possibly because investors are taking a more cautious approach.
Meanwhile, as rules develop, banks and major fintech companies are entering the stablecoin market. U.S. President Donald Trump’s pro-crypto stance has sped up regulatory momentum, prompting lawmakers to clarify stablecoin regulations.
Last month, Bank of America signaled interest in launching its stablecoin, joining companies like Standard Chartered, PayPal, Revolut, and Stripe. This shift coincides with the rising usage of stablecoins in cross-border payments and their potential to offer alternatives to banks in developing nations, especially in sectors like shipping and commodities.
Compared to $521 billion a year ago, stablecoin transaction volumes rose to $710 billion last month, according to data from Visa. There are now over 35 million distinct stablecoin addresses, a 50% increase over the past year. More financial institutions are getting ready to enter the market as U.S. and EU regulators work on stablecoin regulations.
