Stablecoin Market Capitalization Surges 17% to $228 Billion in 2025

The stablecoin market has experienced a significant resurgence in 2025, with the total market capitalization reaching an unprecedented high of $228 billion. This surge represents a $33 billion increase for the year, marking a 17% rise. The growth is attributed to several factors, including renewed crypto trading activity, the expanding use of stablecoins in payments, and increased regulatory clarity in the United States under President Donald Trump.

Tether (USDT) and Circle’s USDC continue to dominate the market. USDT now holds a market cap of $155 billion, up $18 billion year-to-date. USDC has gained $17 billion, reaching a record high of $61 billion, an increase of 39% since January. The total value of ERC-20 stablecoins held on centralized exchanges has reached $50 billion, with USDC reserves growing 1.6 times in 2025 alone, now totaling around $8 billion. This influx supports deeper liquidity for crypto markets.

The report also noted that stablecoins are bouncing back in the yield-bearing segment. These are stablecoins that pay interest to holders, often used in DeFi. The value of staked stablecoins has reached $6.9 billion, up 28% since late May. Most of that growth has come from rising demand for sUSDe and sUSDs, which gained $1.23 billion and $700 million in market cap, respectively.

A recent report from on-chain data platforms shows broader user adoption. Active stablecoin wallets rose from 19.6 million to 30 million over the past year, a 53% increase. The data suggests wider user engagement and points to stablecoins becoming a key part of digital finance. It also noted that stablecoins are increasingly used in decentralized finance (DeFi), gaming, and NFTs. “Stablecoins have emerged as a bridge between traditional finance and crypto,” it said, “and are becoming a core piece of payment and settlement infrastructure.”

This surge in usage is also supported by the rise in real-world payment activity. Data shows $94.2 billion in stablecoin transactions were settled between January 2023 and February 2025. Business-to-business (B2B) payments made up the largest chunk, reaching an annual run rate of $36 billion. Card-linked payments using stablecoins crossed $13 billion in volume.

Increased demand has also come alongside progress on the regulatory front. The U.S. Senate advanced the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” or GENIUS Act. Backed by President Trump, the bill is designed to create a federal framework for dollar-backed stablecoins. The legislation would require stablecoins to be fully backed by U.S. dollars or highly liquid assets. It would also mandate annual audits for issuers with over $50 billion in market cap, and include requirements for foreign issuers.

The Senate voted 68-30 to invoke cloture on the bill, clearing the way for final debate and vote. “This did not happen by accident,” said Senator Tim Scott, one of the bill’s co-sponsors. “To those who said Washington could not act… let’s prove them wrong.” Treasury Secretary Scott Bessent backed the legislation during a Senate hearing. He said stablecoins could play a major role in expanding the use of the U.S. dollar globally. “I think $2 trillion is a very reasonable number,” Bessent said, referring to an estimate that the stablecoin market could exceed that level by 2028. “I could see it greatly exceeding that.”

The GENIUS Act appears to be pushing traditional finance further into the stablecoin space. Large U.S. banks, including JPMorgan, Citigroup, Wells Fargo, and Bank of America, are reportedly exploring a joint stablecoin project. Meanwhile, USDC issuer Circle went public earlier this month, with shares jumping 160% on their first day of trading. Tech firms are also watching closely. Apple, Google, Airbnb, and Elon Musk’s X are all exploring stablecoin integrations. Google has already processed two stablecoin payments. Airbnb has held talks with Worldpay to cut credit card fees using stablecoins. X is reportedly planning to include stablecoins in its X Money app.