Stablecoin Supply Surges 63% in 2024, Reaching $225 Billion
2min read The stablecoin market witnessed a remarkable expansion in 2024, with the total supply surging by 63% from $138 billion in February 2024 to $225 billion in February 2025. This substantial growth reflects the increasing adoption and application of stablecoins across various sectors, including payments, decentralized finance (DeFi), and institutional use. The rise in stablecoin supply indicates their evolving role as a crucial link between traditional finance and the crypto ecosystem.
The growth in stablecoin supply was accompanied by a 53% year-on-year increase in active stablecoin wallets, rising from 19.6 million in February 2024 to 30 million in February 2025. This expansion in active addresses underscores the growing user base and the deeper integration of stablecoins into daily financial transactions. The average transfer size remained relatively stable, slightly increasing from $676,000 in 2024 to $683,000 in 2025. However, notable spikes in May and July, where the average transfer size reached $2.6 million and $2.2 million, respectively, suggest significant institutional or whale activity during those months.
The stablecoin transfer volume also saw a dramatic increase, jumping from $1.9 trillion in February 2024 to $4.1 trillion in February 2025, marking a 115% year-on-year increase. The peak transfer volume was recorded in December 2024, reaching $5.1 trillion, though volumes tapered off in early 2025. Over the past year, stablecoins facilitated a total of $35 trillion in transactions, highlighting their importance in the global financial system.
Analysts interpret the increasing stablecoin supply as an indication that the crypto bull cycle remains robust, despite macroeconomic uncertainties. Historically, stablecoin supply has peaked at cycle tops, and the current figure of $225 billion suggests that the market has not yet reached its peak. Rising stablecoin inflows to exchanges are often seen as a sign of increasing buying pressure, as stablecoins serve as a key on-ramp from fiat to the crypto ecosystem.
The growing stablecoin supply and activity have also attracted the attention of regulators. Comprehensive stablecoin legislation is expected to be finalized in the coming months, with strong bipartisan support. The legislation sets strict collateralization guidelines for stablecoin issuers and mandates full compliance with Anti-Money Laundering laws. This legislation aims to maintain the US dollar’s dominance in on-chain activity and improve payment rails, reshaping financial markets in the process.
The dominance of the US dollar in the stablecoin sector is already evident, with digital dollars accounting for the vast majority of the $230 billion worth of stablecoins in circulation. While some industry experts believe that stablecoins will eventually become multicurrency, the dollar remains the primary choice for funding crypto accounts and facilitating cross-border transactions. The administration's commitment to using stablecoins as a tool to uphold the dollar’s global reserve status further underscores the importance of these assets in the global financial landscape.
