Stablecoin Market Cap Climbs to $255B As Startups Position to Expand Beyond 1.1% U.S. Supply Share

Stablecoins now represent 1.1% of the U.S. dollar supply, with a total market cap of $255.376 billion.

USDT leads the market with 62.45% dominance, supported by activity across Ethereum, Tron, and other blockchains.

The supply is recovering in 2025 following a decline in 2022–2023, with startups fueling continued expansion.

Stablecoins, a type of digital asset intended to be as stable as possible with reference to other quotations, have recorded continued growth. These assets can be fiat currencies such as the U.S. dollar, commodities such as gold, or other financial assets. Currently, the market cap has experienced a 0.84% increment over the past seven days, with the supply of the U.S. dollar implemented to 1.1%.

How Does Stablecoins Work?

These assets operate through mechanisms tied to collateral or supply management. Fiat-collateralized types are backed by real assets held in reserve. Crypto-collateralized versions use other digital assets, while algorithmic stablecoins manage supply through automated protocols.

Their relative price stability allows usage in blockchain-based services including payments and lending. They enable fast transfers without relying on traditional financial institutions. However, regulators continue to examine their growth, focusing on reserve adequacy and compliance with financial laws. Initially used for trading, stablecoins now serve broader roles in decentralized finance. Their functionality continues to expand across global markets.

Stablecoins Account for 1.1% of Total U.S. Dollar Supply, Market Data Shows

According to a recent observation, new data shows that these assets now make up 1.1% of the U.S. dollar supply, reflecting their expanding footprint. Token Terminal released a chart comparing the total supply with the U.S. M2 money supply over time.

Source: X

The M2 supply steadily increased from 1960, with sharper growth recorded after 2010. This acceleration continued beyond 2020, reaching nearly $21 trillion. Stablecoins began to appear in the data around 2017. Their supply remains small but visible compared to the broader money supply.

After 2020, the U.S. money supply grew rapidly, further increasing the difference between fiat and stablecoin totals. Despite this gap, stablecoins have entered the realm of measurable monetary data. Although stablecoins represent a small share, they now appear in comparisons with traditional monetary aggregates. Data reflects a new presence in tracked supply metrics.

Market Cap Reaches $255 Billion as USDT Maintains Market Share Lead

Additionally, the total market capitalization has climbed to $255.376 billion, based on DeFiLlama data. This marks a $2.124 billion increase over the past seven days, with a growth rate of 0.84% during that period.

Source: DefiLlama

Supply saw a rise starting in 2020, with a strong expansion noted through 2021. A elevation occurred in early 2022, followed by a steady decline through late 2022 and early 2023. By mid-2024, the market began rebounding, continuing its upward trend into 2025.

Currently, Tether (USDT) forms the largest market share in currency supply with 62.45% of the entire stablecoin supply. The activity is on multiple blockchain networks such as Ethereum and Tron. The recent growth reflects continued movement in stablecoin issuance as current figures show ongoing demand within blockchain-based financial systems.