Stablecoin Market Hits $261B as 22-Month Growth Streak Continues

Generated by AI AgentCoin World
Thursday, Aug 7, 2025 7:56 am ET2min read
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Aime RobotAime Summary

- Stablecoin market hit $261B in July, extending 22-month growth streak with $1.6T trading volume on centralized exchanges.

- Tether (USDT) led with $164B market cap but saw 0.7% dominance drop as USDC and Ethena USDe gained 3.78% and 43.5% respectively.

- Tron network captured 50% of USDT supply ($81.9B), while new federal regulations (GENIUS Act) mandated 1:1 cash/Treasury backing for payment stablecoins.

- Non-USD stablecoins reached $1B+ market cap collectively, with Hong Kong and Remitly advancing regional adoption, though JPMorgan projected only $500B by 2028.

The stablecoin market continued its impressive momentum in July, with total market capitalization rising 4.87% to $261 billion, marking another record high and extending its consecutive growth streak to 22 months [1]. This surge was supported by a massive $1.60 trillion in trading volume on centralized exchanges, signaling robust activity and increasing integration into broader financial markets [2].

Tether (USDT) maintained its leadership in the sector, expanding its market capitalization by 3.61% to $164 billion in July, marking its 23rd consecutive month of growth. However, its dominance dipped slightly from 62.5% to 61.8% as competitors like USD Coin (USDC) and Ethena USDe gained traction. USDC saw a 3.78% increase, reaching $63.6 billion, while Ethena USDe surged by 43.5% to $7.60 billion, despite a drop in staked APY from over 20% to 9.79% [3].

Among the top 10 stablecoins, Falcon Finance’s USDf stood out with a 121% increase in market capitalization to $1.07 billion, showcasing the sector’s dynamic nature [4]. Conversely, stablecoins such as BlackRock’s BUIDL and First Digital Labs’ FDUSD posted declines of 15.9% and 8.54%, respectively, reflecting varied performance across the ecosystem [5].

The

Tron
network also gained significant traction, with its USDT supply reaching $81.9 billion—capturing over 50% of the total USDT supply for the first time since August 2024. This shift highlights a broader migration of stablecoin activity from Ethereum to Tron [6].

Regulatory developments further bolstered confidence in the sector. The GENIUS Act, signed into law by President Trump on July 18, introduced the first federal regulations for “payment stablecoins,” requiring full 1:1 backing by cash or U.S. Treasuries, along with monthly reserve disclosures and audit requirements [7]. These measures have accelerated institutional adoption and improved stakeholder confidence in the stability and transparency of stablecoins.

The growth of the sector was not limited to U.S.-pegged stablecoins. For the first time, non-USD stablecoins—such as those backed by euros and the Russian ruble—collectively reached a market capitalization of over $1 billion [8]. This diversification suggests expanding global applications beyond traditional trading use cases.

Hong Kong also signaled openness to stablecoin innovation, with its licensing regime proposing to allow HKD- and CNY-pegged stablecoins to participate in Asian settlement markets [9]. Meanwhile, financial infrastructure providers like Remitly announced plans to integrate stablecoin functionality into their global payment systems, indicating broader mainstream adoption [10].

The industry remains divided on future projections. Ripple CEO Brad Garlinghouse has forecasted explosive growth, suggesting the stablecoin market could reach $2 trillion in the near term, citing institutional adoption and regulatory progress as key drivers [11]. However,

JPMorgan
has taken a more conservative stance, predicting a market size of around $500 billion by 2028 and dismissing trillion-dollar estimates as “far too optimistic,” noting limited mainstream adoption and narrow use cases as constraints [12].

Sources:

[1] https://cryptonews.com/news/stablecoin-market-cap-soars-4-87-to-261b-following-22-month-growth-streak/