The stablecoin market is showing a new pattern: USDC market capitalization rise, USDe is rapidly emerging

Stablecoins are reshaping the global financial system at an unprecedented pace. According to a report titled "The Current State of Stablecoins in 2025" released by a data platform, the stablecoin market has seen significant rise over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and a continuous increase in on-chain trading activity.

Market Size and Growth Trends

As of February 2025, the supply of stablecoins has reached 214 billion USD, with an annual trading volume of up to 35 trillion USD, which is twice the annual transaction volume of a well-known credit card company. Market activity has risen in tandem, with the number of active on-chain addresses growing by 53%, surpassing 30 million. Institutional funds are flowing in on a large scale, driving the deep integration of traditional finance and the crypto market.

Changes in the Market Position of USDC and USDT

Under the push of the compliance process and market strategies, USDC and USDT still dominate, but there are subtle changes in market share.

• The market capitalization of USDC doubled to $56 billion, primarily benefiting from financial regulatory approvals in Europe and Dubai, strategic partnerships with multiple payment companies, and the rapid expansion of the global market.
• The total market capitalization of USDT has risen to 146 billion USD, still making it the largest stablecoin by market capitalization, although its market share has declined, with institutional adoption decreasing, gradually shifting focus to the P2P remittance market, consolidating its position in the global payments sector.

The Rise of Decentralized Stablecoins

In the decentralized finance (DeFi) ecosystem, the influence of decentralized stablecoins has significantly increased, with several emerging projects achieving breakthrough growth.

• USDe: Market capitalization surged from 146 million USD to 6.2 billion USD, becoming the third largest stablecoin in the market, with the key to its growth lying in its innovative yield strategy and Delta neutral hedging mechanism.
• USDS: A compliance-friendly stablecoin launched by a well-known DAO brand after its rebranding, with a market capitalization reaching $2.6 billion by February 2025. This adjustment has enhanced its competitiveness in the decentralized stablecoin market.

Capital Flow and Industry Distribution

The liquidity trends of stablecoins reflect the positioning and competitiveness of different public chains in the market:

• Ethereum remains the primary issuance platform for stablecoins, accounting for 55% of the supply share.
• Base and Solana have experienced rapid growth in trading volume, driven by the DeFi and meme coin markets, and have become important on-chain ecosystems for the flow of stablecoin funds.
• TRON continues to hold a central position in the global P2P payment and cross-border remittance markets, especially in emerging markets, where stablecoins are widely used for payments and savings.

Most stablecoin liquidity is primarily concentrated in centralized exchanges (CEX), with trading volume mainly driven by DeFi (DEX, lending, yield farming), reflecting the efficient flow of funds and innovation.

Core Functions and Future Development

Stablecoins have become a key infrastructure in the cryptocurrency market, while also driving innovation in the traditional financial sector. Industry experts are optimistic about the future development of stablecoins:

A partner at a well-known investment firm stated that stablecoins are the lifeline of the crypto market and a superconductor of the financial system. They have opened up new markets and financial opportunities, driving innovations that were previously hard to reach.

The product manager of a certain public chain emphasized the significant advantages of stablecoins in cross-border payments and hopes to support more local currency stablecoins, allowing global users to trade on-chain using familiar currencies, thereby increasing the popularity of blockchain technology.

The research head of the USDe team pointed out that the new generation of stablecoins must have market resilience. The core of USDe is a yield-supported stability mechanism that ensures users receive a reliable dollar alternative.

A data analysis expert believes that the flow of stablecoins depends on the quality of the infrastructure – low costs, fast transactions, and market demand. In Solana, the demand for liquidity and instant settlement in Meme coin trading pairs is extremely high, making stablecoins an indispensable part.

The spokesperson for the TRON ecosystem stated that TRON has become the preferred blockchain for stablecoin trading, with daily transaction volumes reaching billions of dollars. USDT on TRON has driven real economic activity, especially in emerging markets, and has become a key tool for payments and savings.