USDT Drives $300 Billion Stablecoin Boom During Unprecedented Q3 Crypto Surge

The total market capitalization of stablecoins has surpassed $300 billion for the first time in history this week. This surge has been primarily driven by the Genius Act and new accounting guidelines from the SEC, significantly improving confidence in stablecoins.

This growth has led to a marked increase in both institutional and retail adoption through 2025.

$300 Billion Milestone

According to DeFiLlama, Tether (USDT) maintains its position as the leading stablecoin, holding 58.52% of the market with a valuation of $176.241 billion. Circle’s USD Coin (USDC) follows with a market capitalization exceeding $74 billion, while USDe, the third-largest yield-bearing stablecoin, holds $14.83 billion.

This milestone reflects stablecoins’ rising importance in the cryptocurrency ecosystem and comes at a time when the market is recovering after a tumultuous week.

Typically, Q3 is a quieter time for crypto, but 2025 has defied expectations, emerging as a record-breaking period for stablecoins. Activity surged thanks to regulatory clarity and increased user engagement. A report from Cex.io indicated that Google searches for “stablecoin” spiked following significant announcements.

For example, the US government enacted the Genius Act, while the Securities and Exchange Commission (SEC) offered new accounting guidelines that categorized USD-pegged stablecoins as cash equivalents. These regulatory changes have fostered trust among institutional and retail investors alike.

Impact on the Global Role of the USD

The rapid expansion of the stablecoin market is notably reshaping the global role of the US dollar, as asserted by John Murillo, Chief Business Officer of B2BROKER. In a statement to CryptoPotato, Murillo noted that this growth is partly a result of last month’s slow market movement in major cryptocurrencies like Bitcoin and Ether, which encouraged investors to migrate towards dollar-pegged stablecoins.

“With it, the global footprint of the US dollar has certainly deepened, because around 98% of all stablecoins are directly or indirectly dollar-pegged. This has been, for better or worse, embedding USD into decentralized finance, cross-border payments while helping stabilize many inflation-hit economies. In regions like Nigeria and Venezuela, digital dollars now circulate more freely than local currencies, extending the dollar’s dominance into the digital realm.”

However, Murillo cautioned that this expansion comes with systemic risks. He highlighted that stablecoins often operate outside conventional banking regulations, raising concerns about reserve transparency and liquidity vulnerabilities. A sudden loss of confidence—either from opaque backing or platform failures—could destabilize both the crypto markets and traditional fiat systems.

As stablecoins increasingly function within decentralized networks, they may operate independently of US institutions, potentially restricting Washington’s direct influence over monetary policy.

“The dollar remains dominant in form, but increasingly contested in function.”