Stablecoin adoption is on the rise, exemplified by Tether’s USDT, which exceeded a circulating supply of $150 billion for the first time on May 12, 2025. This represents an $11 billion increase in its market cap since the start of the year.
USDT holds a commanding 62% share of the stablecoin market, buoyed by 3.79% growth in the last month. Its closest rival, USDC, also saw a minor increase of 1.23%. Furthermore, other stablecoins such as BlackRock’s BUIDL, which is tied to tokenized U.S. Treasuries, surged by 19.3% to reach a $2.89 billion market cap; MakerDAO’s DAI climbed by 12.07% according to data from DefiLlama.
A significant part of the growth in Tether’s USDT supply is credited to mints on the Tron network, which added $12.2 billion in stablecoins over the last three months compared to $2.3 billion on BNB Smart Chain and $1.7 billion on Ethereum within the same period.
“From 0 to $150B. Born in 2014, Tether didn’t just launch USD₮ — it launched the entire stablecoin industry. Today, USD₮ is trusted by 400+ million people & powers the digital economy. To every user, builder & believer: thank you❤️ We’re just getting started #UnstoppableTogether pic.twitter.com/PPC2PUy1Si” — Tether (@Tether_to) May 12, 2025
Overall, the stablecoin market achieved an all-time high capitalization of $242.81 billion, marking a 3.75% increase in just the last month. The sector has now outstripped Germany, Mexico, South Korea, and Saudi Arabia in terms of U.S. Treasuries ownership, according to Bitwise’s Q1 report.
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Stablecoins to Overtake Current Crypto Market Cap?
A recent report published by Citi’s Future Finance think tank argues that the stablecoin market could potentially surpass the overall market cap of all cryptocurrencies, which currently exceeds $3.5 trillion according to CoinGecko.
Citi predicts that 2025 might be stablecoins’ “ChatGPT moment,” where widespread adoption occurs, encouraged by regulatory changes. Their analysis forecasts that the outstanding supply of stablecoins could swell to $1.6 trillion under base conditions, or could soar to $3.7 trillion during a bull market.
Conversely, the report warns that despite potential growth, if regulatory challenges remain unaddressed, the market may stall around $500 billion. Relative to the current stablecoin market value of $242 billion, this implies a 600% growth in market cap by 2030 and 1500% if a bull market unfolds.
Moreover, the investment bank anticipates that issuers could acquire up to $1 trillion in U.S. Treasuries by 2030 to back their stablecoins.
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Predictions Depend on Favorable Stablecoin Regulations
While favorable regulations shape Citi’s projections for the stablecoin market cap, regulatory discussions remain contentious, notably in the U.S., where the stablecoin regulation bill termed the GENIUS Act has not yet passed.
The bill managed to garner only 49 of the 60 votes required to clear the chamber, with Republican senators Josh Hawley and Rand Paul opposing it. Democratic Senator Mark Warner commented that substantial progress has been made but the bill is incomplete, and he cannot in good conscience support it without finalized text.
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Key Takeaways
- USDT commands a 62% market cap within the stablecoin sector.
- The overall stablecoin sector has achieved an unprecedented market cap of $242.81 billion.
- Citi forecasts a 600% market cap growth for stablecoins by 2030, based on the current figures.
