Factors Driving Stablecoin Market Expansion: Report

• Stablecoin market value climbed from 207B to 307B during 2025 as adoption expanded.
• USDT and USDC led supply growth, while alternative stablecoins also gained traction.
• Regulation and institutional adoption supported stablecoin demand across markets.

The global stablecoin market expanded sharply in 2025, with total market capitalization rising nearly 50% over the year, according to data shared by CryptoRank on X. Figures sourced from CryptoRank.io and DeFiLlama show the market growing from about $207 billion on January 1 to roughly $307 billion by December 29. 

Market Growth Accelerates Through the Year

Data pointed out by the chart reflects a constant increase in the demand for digital assets in the first half of 2025. The value of the company went up to over $220 billion in February and by April it was about $240 billion. Growth was there in May and June, but the supply increased simultaneously. 

By July, the pace of growth was already higher than before. The amount of all stablecoins in the market reached $260 billion as new coins made their way into the market. From August to October, the market saw its sharpest expansion. Total capitalization surged past $280 billion and briefly exceeded the $300 billion mark. Although small pullbacks appeared in November, the market stabilized near year-end, closing December near $307 billion. 

Supply Shifts Among Major Stablecoins

CryptoRank data also showed significant supply changes among leading stablecoins. USDT grew from $137 billion to $187 billion during 2025, preserving its dominant position across trading and liquidity markets. Its growth tracked closely with rising overall market capitalization.

Source: X

USDC recorded strong percentage growth. Supply expanded from $44 billion at the start of the year to $76 billion by year-end. The increase reflected wider usage across exchanges, DeFi platforms, and institutional channels.. USDC rose sharply from $1.28 billion to $6 billion in supply.

Related: South Korea Delays Digital Asset Law Over Stablecoin Rift

Regulation, Institutions, and Market Structure

According to the latest data from DeFiLlama, the total market cap of stablecoins has increased to $307.917 billion, with USDT having the largest market share of 60.72%. The graph indicates a downward trend over the past week, amounting to $282.39 million, or 0.09%, which is indicative of short-term consolidation.. 

Source: DeFiLlama

The overall increase was the result of several factors. The U.S.regulatory framework was significantly impacted by the passage of the GENIUS Act. Europe’s regulatory environment has also become clearer with the introduction of the MiCA regulation. At the same time, the use of stablecoins alongside their technological expansion results in more institutions adopting cryptocurrencies.

The market situation in 2025 was very favorable for expansion. The high price differences of top coins are leading many investors to switch over to stablecoins for safekeeping and liquidity.  Besides, derivatives markets and perpetual trading platforms have also contributed to the demand since stablecoins are the main assets required for margin and collateral. Currently, USDT and USDC make up approximately 90% of the total stablecoin market, as per Motley Fool’s analysis.