In a significant development for the cryptocurrency market, stablecoin transaction volumes reached an all-time high of $33 trillion in 2025, reflecting a remarkable 72% increase year-over-year. This surge was largely fueled by supportive regulatory measures and a favorable pro-crypto environment established in the United States, which enhanced both institutional and retail adoption.
The leading players in the stablecoin arena were USD Coin (USDC) and Tether (USDT), with USDC accounting for approximately $18.3 trillion in transactions and USDT contributing about $13.3 trillion. Together, these two stablecoins dominated the market, showcasing their vital role in the growing acceptance of cryptocurrencies.
Stablecoins are unique cryptocurrencies designed to maintain a stable value by pegging them to real-world assets like the US dollar or gold. The regulatory landscape has evolved, particularly with the passage of the GENIUS Act in July under the Trump administration, which aimed to promote stablecoin usage and create a conducive environment for crypto activities. This regulatory clarity has attracted attention from various institutions looking to leverage cryptocurrencies, especially stablecoins.
Several major firms, including Standard Chartered, Walmart, and Amazon, have signaled their intention to develop their own stablecoins, further indicating a trend toward widespread adoption. Additionally, World Liberty Financial Inc., a decentralized finance (DeFi) platform linked to the Trump family, introduced its stablecoin, known as USD1, in March 2024.
Despite the booming transaction volumes, a financial report indicated a notable decline in the percentage of transactions occurring on decentralized crypto platforms. This trend suggests that many users are opting to utilize digital dollars in more mainstream financial settings, rather than engaging with decentralized options.
Commenting on these developments, Anthony Yim, co-founder of Artemis, highlighted that the findings demonstrate a shift in individual behavior towards stablecoins, particularly in regions facing economic instability. He noted that individuals in countries grappling with rising inflation are increasingly turning to stablecoins as a means to preserve their wealth.
Data from CoinGecko ranks Tether”s USDT as the largest stablecoin by market capitalization, with a total circulation of approximately $187 billion, surpassing Circle”s USDC, which holds a market value of around $75 billion. However, despite USDT”s larger market cap, Artemis” data reveals that USDC is preferred for transaction volume, indicating its popularity among DeFi traders who frequently shift positions using the same stablecoin.
This distinction between USDC and USDT underscores the varying roles each stablecoin plays in the market. While USDC is often used for transactions, USDT is favored for business dealings and as a store of value, leading users to keep it in wallets rather than transferring it regularly.
In response to the regulatory advancements, Circle”s Chief Strategy Officer, Dante Disparte, stated that the GENIUS Act has fostered an environment that enhances liquidity and boosts regulatory confidence in USDC, thus encouraging greater adoption. Tether, on the other hand, did not provide comments when approached regarding these developments.
As the landscape continues to evolve, the implications of these trends for both users and the broader cryptocurrency ecosystem remain to be seen, especially with the increasing interest from major corporations in stablecoin development.
