Evolution of the Stablecoin Market Landscape: USDC's Rapid Rise, USDe's Emergence

Stablecoins are reshaping the global financial system at an unprecedented speed. According to the latest report on the state of stablecoins in 2025, the stablecoin market has seen significant rise over the past year, with accelerated institutional adoption, the emergence of decentralized stablecoins, and a continuous increase in on-chain transaction activity.

Market Size and Growth Trends

As of February 2025, the supply of stablecoins has reached $214 billion, with an annual transaction volume of up to $35 trillion, which is twice the annual transaction volume of a well-known payment network. Market activity has risen in tandem, with the number of on-chain active addresses increasing 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 Dominance of 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 doubled to $56 billion, mainly due to regulatory approvals in the EU and the Middle East, as well as strategic partnerships with several payment giants.
• The total market capitalization of USDT has risen to 146 billion USD, still making it the largest stablecoin by market cap, but its market share has declined, with a decrease in institutional adoption, gradually shifting focus towards the P2P remittance market, consolidating its position in the global payments sector.

Rise of Decentralized Stablecoins

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

• The market capitalization of USDe surged from $146 million to $6.2 billion, making it the third largest stablecoin in the market. The key to this rise lies in its innovative yield strategy and Delta neutral hedging mechanism.
• The market capitalization of USDS reached 2.6 billion USD in February 2025. This adjustment enhances 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 primary issuance platform for stablecoins, accounting for 55% of the supply share.
• Some emerging public chains have rapidly increased 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 blockchain 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 primarily concentrated on centralized exchanges, with trading volume mainly driven by DeFi (DEX, lending, yield farming), reflecting the efficient flow and innovation of capital.

Core Functions and Future Development

Stablecoins have become a key infrastructure in the crypto 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 stated: "Stablecoins are the lifeline of the crypto market and a superconductor for the financial system. They open up new markets and financial opportunities, driving innovations that were previously hard to reach."

The product manager of a certain blockchain platform 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 stablecoin project emphasized: "The next generation of stablecoins must possess market resilience. Our core is a yield-backed stabilization mechanism that ensures users receive a reliable alternative to the US dollar."

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

A spokesperson for a blockchain foundation summarized: "Certain public chains have become the preferred choice for stablecoin transactions, with daily trading volumes reaching billions of dollars. Specific stablecoins have driven real economic activities on these networks, especially in emerging markets, where they have become essential tools for payment and savings."