Stablecoin Surge Hits $46B Amid Declining User Activity, Signaling Market Shift

$46B poured into stablecoins last quarter: Here's who took the lead

Stablecoin net inflows surged to $45.6 billion in the third quarter of 2025, a 324% increase from $10.8 billion in the second quarter, according to data from RWA.xyz. This marks a dramatic acceleration in demand for U.S. dollar-pegged assets within the crypto ecosystem. Tether's USDT led the charge with $19.6 billion in net inflows, followed by Circle's USDC with $12.3 billion. Ethena's synthetic stablecoin USDe also saw significant adoption, with $9 billion in inflows, highlighting the growing influence of algorithmic models in the spaceUSDT and USDC dominate $46B in quarterly stablecoin inflows^[1].

The surge was driven by a combination of macroeconomic factors and regulatory clarity. The U.S. GENIUS Act, enacted in July 2025, established a framework for fully reserved stablecoins, while the EU's MiCA regulations imposed usage caps on high-velocity tokens. These developments provided institutional and retail investors with greater confidence in stablecoin stability and transparencyState of Stablecoins - September 2025^[2]. Additionally, short-term Treasury yields near 4% bolstered issuer profits, incentivizing further issuanceState of Stablecoins - September 2025^[2].

Ethereum remained the dominant blockchain for stablecoins, hosting $171 billion in circulating supply, nearly double that of Tron ($76 billion). Tether's USDT maintained its market leadership with a 59% share, followed by USDC at 25% and USDe at 5%. The overall stablecoin market capitalization reached $290 billion in the last 30 days, reflecting sustained investor interestUSDT and USDC dominate $46B in quarterly stablecoin inflows^[1]. However, metrics like monthly active addresses and transfer volumes declined by 22.6% and 11%, respectively, suggesting a shift toward larger, less frequent transactionsUSDT and USDC dominate $46B in quarterly stablecoin inflows^[1].

Emerging players also gained traction. PayPal USD (PYUSD) and MakerDAO's USDS added $1.4 billion and $1.3 billion in inflows, respectively, while Ripple's RLUSD and Ethena's USDtb saw steady gains. These developments indicate a maturing market where niche stablecoins are carving out roles alongside established onesUSDT and USDC dominate $46B in quarterly stablecoin inflows^[1].

Analysts caution that while the inflows signal strong demand, challenges remain. The decline in active addresses and transfer volumes may reflect a shift in user behavior rather than a loss of interest. Additionally, regulatory scrutiny is intensifying, with the Financial Stability Board and Bank for International Settlements focusing on run risks and reserve quality. As stablecoins continue to integrate into mainstream finance-via partnerships with Visa and Shopify-their role in cross-border payments and yield-bearing assets is likely to expandState of Stablecoins - September 2025^[2].