Significant Changes in the Stablecoin Market Landscape: USDC's Share Rises Dramatically, New Star USDe Emerges

Stablecoins are reshaping the global financial landscape at an astonishing rate. According to the recently released report "2025 Stablecoin Status", the stablecoin market has seen 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 surpassed $214 billion, with an annual transaction volume reaching $35 trillion, which is double the annual transaction volume of a well-known credit card company. Market activity is rising simultaneously, with the number of active on-chain addresses increasing by 53%, surpassing 30 million. A large amount of institutional capital is flowing in, driving the deep integration of traditional finance and the crypto market.

The Change in Dominance between USDC and USDT

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

The market value of USDC has doubled to $56 billion, mainly due to regulatory approvals in Europe and the UAE, as well as strategic partnerships with several payment giants. The total market value of USDT has risen to $146 billion, still making it the largest stablecoin by market value, but its market share has declined, with institutional adoption decreasing, and the focus gradually shifting towards the P2P remittance market, consolidating its position in the global payment sector.

The Rise of Decentralized Stablecoins

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

The market capitalization of USDe skyrocketed from 146 million USD to 6.2 billion USD, making it the third largest stablecoin in the market. The key to this growth lies in its innovative yield strategy and Delta-neutral hedging mechanism. The market capitalization of USDS reached 2.6 billion USD by February 2025. This adjustment has enhanced its competitiveness in the decentralized stablecoin market.

Capital Flow and Industry Distribution

The liquidity trend of stablecoins reflects the positioning and competitiveness of different public chains in the market:

• Ethereum remains the main issuance platform for stablecoins, accounting for 55% of the supply share.
• A certain Layer2 network and a certain high-performance public chain have seen rapid growth in transaction 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 occupy 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 mainly concentrated in centralized exchanges, with trading volume primarily driven by DeFi (DEX, lending, yield farming), reflecting the efficient flow and innovation of funds.

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 hold an optimistic view on the future development of stablecoins:

A general partner of a venture capital firm stated: "Stablecoins are the lifeline of the crypto market and the superconductor of the financial system. They open up new markets and financial opportunities, driving innovations that were previously hard to access."

A product leader from a Layer 2 network pointed out: "The advantages of stablecoins in cross-border payments are significant. We hope to support more local currency stablecoins, allowing global users to trade on-chain with familiar currencies, thereby increasing the popularity of blockchain technology."

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

A data analysis expert believes: "The flow of stablecoins depends on the quality of infrastructure—low cost, fast transactions, and market demand. On a certain high-performance public chain, Meme coin trading has a high demand for liquidity and instant settlement, making stablecoins an indispensable part."

A spokesperson for a public blockchain 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 network, especially in emerging markets, and it has become a key tool for payments and savings."