The Stablecoin Market Shows a New Landscape: USDC Sees Significant Growth, USDe Rapidly Rises

Stablecoins are reshaping the global financial system at an unprecedented speed. According to the latest report titled "The State of Stablecoins 2025," the stablecoin market has experienced significant growth over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and continued increases in on-chain trading activity.

Market Size and Growth Trends

As of February 2025, the supply of stablecoins has reached $214 billion, with an annual trading volume of up to $35 trillion, which is twice the annual transaction volume of a well-known payment network. Market activity is rising in tandem, with the number of active addresses on the chain 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.

The Change in Dominance Between USDC and USDT

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

• USDC's market value has doubled to $56 billion, primarily benefiting from relevant regulatory approvals, the addition of important strategic partners, and the rapid expansion of the global market.
• The total market capitalization of USDT has grown to 146 billion USD, still making it the largest stablecoin by market capitalization, but its market share has declined, with a decrease in institutional adoption, gradually shifting focus to the P2P remittance market, solidifying its position in the global payment space.

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 to $6.2 billion, becoming the third largest stablecoin in the market, with the key to its growth being its innovative yield strategy and Delta-neutral hedging mechanism.
• USDS: A compliance-friendly stablecoin launched after a well-known decentralized organization's rebranding, with a market value reaching $2.6 billion as of February 2025. This adjustment has strengthened 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.
• Some emerging public chains have experienced rapid growth in trading volume, driven by the DeFi and Meme coin markets, and have become an important on-chain ecosystem for the circulation of stablecoin funds.
• A certain public chain continues to hold a core position in the global P2P payment and cross-border remittance market, 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 driven mainly by DeFi (DEX, lending, yield farming), reflecting efficient capital circulation 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 an investment firm believes: "Stablecoins are the lifeline of the crypto market and the superconductor of the financial system. They open up new markets and financial opportunities, driving innovation that was previously difficult to access."

A certain public chain product leader stated: "Stablecoins have significant advantages in cross-border payments. We hope to support more local currency stablecoins, allowing global users to trade on-chain using familiar currencies, thereby increasing the popularity of blockchain technology."

The head of research for a certain stablecoin project pointed out: "The new generation of stablecoins must have market resilience. Our core is a yield-supported stability mechanism that ensures users receive a reliable alternative to the dollar."

A certain data analysis expert believes: "The flow of stablecoins depends on the quality of infrastructure—low costs, fast transactions, and market demand. On certain public chains, the demand for liquidity and instant settlement for Meme coin trading pairs is extremely high, making stablecoins an indispensable part."

A spokesperson for a certain public chain community stated: "We have become the preferred blockchain for stablecoin trading, with daily trading volumes reaching billions of dollars. A certain stablecoin has driven real economic activity on our platform, especially in emerging markets, and it has become a key tool for payment and savings."