The total supply of cryptocurrency stablecoins has hit an all-time high, surpassing $200 billion, according to data from Artemis Terminal. Stablecoins are cryptocurrencies that maintain stable value, unlike volatile ones like Bitcoin. They’re usually linked to stable assets, such as the US dollar or commodities like gold, and can also be managed through complex systems.
Their stability makes them ideal for everyday transactions, trading, and investing. They facilitate quick money transfers between cryptocurrencies without needing to convert to traditional money. For international transfers, they’re faster and cheaper than traditional banking, combining the benefits of cryptocurrencies with the predictability of conventional currencies.
USDT, USDC, and others
The Artemis report showed Tether (USDT) leading the market with a supply of $142.9 billion. Tether (USDT) is issued by Tether Limited Inc. and is the oldest stablecoin pegged to the US dollar. USDT is backed by reserves that include cash, cash equivalents, and other financial assets, ensuring its value remains tied to the US dollar. Since its inception, it has remained the most used stablecoin globally, surpassing others year to year.
After Tether, USDT is the USD Coin (USDC) at $42.3 billion. USD Coin (USDC) is a widely used stablecoin designed to maintain a 1:1 value with the US dollar. It was launched in 2018 by Circle and Coinbase, two major players in the cryptocurrency industry, under the Centre Consortium.
USDC, like USDT, is backed by reserves that include cash and short-term US government bonds, ensuring its stability. These reserves are regularly audited to provide transparency and assure users that the coin is fully backed by real assets.
USDe at $6 billion follows USDC. USDe is a stablecoin created by Decentral Bank, a project focused on developing a decentralized financial system. The goal of USDe is to provide a reliable and secure stablecoin for various blockchain applications, including decentralized finance (DeFi) and other cryptocurrency-related services.
Other notable stablecoins mentioned by Artemis include DAI, FDUSD, AND USDS at $4.5 billion, $1.9 billion, and $1.2 billion, respectively.
Growth of stablecoin usage
The data reveals the increasing demand for stablecoins, which are widely used in trading, payments, and value storage within the rapidly growing cryptocurrency industry. From 2018 to 2022, the market capitalization of fiat-backed stablecoins surged by over 3,121%, reaching $181.7 billion during the bull run. Despite facing challenges, it has continued to grow by 35.4%, reaching $161.2 billion in 2024.
Read also: Tether’s CEO warns EU’s MiCA rules threatens stablecoins and banking
A key factor driving this growth is the adoption of stablecoins within decentralized finance (DeFi), where they simplify and secure activities such as lending, borrowing, and earning rewards. Their stable value is crucial for liquidity pools in decentralized exchanges (DEXs), helping to minimize losses due to unexpected price fluctuations.
Stablecoins also offer financial access to individuals in countries with unstable economies, allowing them to participate in DeFi markets without worrying about their local currencies’ value volatility. “While stablecoins are gaining traction among institutions, much of their growth is fueled by transfers under $1 million,” said Chainalysis in its stablecoin report, noting that non-institutional investors are driving their global adoption.
Moreover, over 25% of businesses worldwide now use stablecoins as a form of payment, reflecting a notable shift in how companies manage transactions. Statistics also reveal that stablecoins account for about 30% of global remittances and 15% of e-commerce transactions. It’s no surprise that between 60% and 80% of the total cryptocurrency market volume comes from stablecoin trades, with Tether leading as the most traded stablecoin daily.
According to a 2023 report by the Bank for International Settlements (BIS), global cross-border payments using stablecoins have risen by more than 30% year-over-year, highlighting their role in enhancing the efficiency and cost-effectiveness of international transfers.
These statistics show that despite regulatory challenges, such as the recent MiCA rule that led Coinbase to delist USDT from its platform, the growing adoption of stablecoins—driven by their stability, use in DeFi, efficiency in cross-border payments, and role as a safe haven during market fluctuations—is expected to continue.
