- Topic1/3
35k Popularity
18k Popularity
2k Popularity
25k Popularity
17k Popularity
- Pin
- 📢 #Gate Square Writing Contest Phase 3# is officially kicks off!
🎮 This round focuses on: Yooldo Games (ESPORTS)
✍️ Share your unique insights and join promotional interactions. To be eligible for any reward, you must also participate in Gate’s Phase 286 Launchpool, CandyDrop, or Alpha activities!
💡 Content creation + airdrop participation = double points. You could be the grand prize winner!
💰Total prize pool: 4,464 $ESPORTS
🏆 First Prize (1 winner): 964 tokens
🥈 Second Prize (5 winners): 400 tokens each
🥉 Third Prize (10 winners): 150 tokens each
🚀 How to participate:
1️⃣ Publish an
- 📢 Gate Square #TopContentChallenge# is coming! Post high-quality content and win exclusive rewards!
🌟 We will select outstanding posts for exposure, and help elevate your influence!
💡 How to Participate?
1.Add the #TopContentChallenge# tag to your post.
2.Posts must be over 60 characters and receive at least 3 interactions (Likes/Comment/Share).
3.Post may include only the #TopContentChallenge# tag.
🎁 We’ll select 1 top post to win $50 Futures Voucher every Tuesday and Thursday!
📃 High-quality posts will be shared on Gate Square and labeled as [Featured Posts]!
📌 Rewards will be distribu
- 🎉 [Gate 30 Million Milestone] Share Your Gate Moment & Win Exclusive Gifts!
Gate has surpassed 30M users worldwide — not just a number, but a journey we've built together.
Remember the thrill of opening your first account, or the Gate merch that’s been part of your daily life?
📸 Join the #MyGateMoment# campaign!
Share your story on Gate Square, and embrace the next 30 million together!
✅ How to Participate:
1️⃣ Post a photo or video with Gate elements
2️⃣ Add #MyGateMoment# and share your story, wishes, or thoughts
3️⃣ Share your post on Twitter (X) — top 10 views will get extra rewards!
👉
The stablecoin market structure is being reshaped: USDE rises to challenge the dual oligopoly of USDT and USDC.
Stablecoin Market Analysis Report: An Evolving New Order
Introduction
Stablecoins, as a key component connecting traditional finance and the crypto asset ecosystem, have seen their strategic position continue to rise. From the early centralized custody model to today's on-chain synthesis and algorithm-driven mechanisms, the market structure has undergone fundamental changes.
The demand for stablecoins is rapidly expanding due to DeFi, RWA, LSD, and L2 networks, driving the formation of a new pattern of coexistence, competition, and synergy among various models. This is no longer just a market segmentation issue; it is a deep competition concerning the "future form of digital currencies" and the "on-chain settlement standards."
This report focuses on the main trends and structural characteristics of the current stablecoin market, systematically sorting out the operating mechanisms, market performance, on-chain activity, and policy environment of mainstream projects, to aid in understanding the evolution trends and future competitive landscape of stablecoins.
1. Stablecoin Market Trends
1.1 Global Stablecoin Total Market Capitalization and Growth Trends
As of May 26, 2025, the total market value of global stablecoins has reached approximately $246.38 billion, an increase of about 4927.64% compared to approximately $5 billion in 2019, showing an explosive growth trend. This highlights the rapid expansion of stablecoins within the cryptocurrency ecosystem and their increasingly irreplaceable position in areas such as payments, trading, and DeFi.
The stablecoin market will continue to grow rapidly in 2025, with an increase of 78.02% compared to the market value of 138.4 billion USD in 2023, currently accounting for 7.04% of the total cryptocurrency market value, further consolidating its core position.
Annual data and growth of stablecoin market value from 2019 to 2025:
Trend Insights:
2019-2022: Market capitalization surged from $5 billion to $167.9 billion, a 32-fold increase, mainly driven by the explosion of the DeFi ecosystem, increased demand for cross-border payments, and market risk aversion.
2023: Market capitalization fell by 17.57%, mainly due to the collapse of TerraUSD and tightening global crypto regulations.
2024-2025: Market capitalization rebounds strongly, growing by 78.02%, reflecting increased institutional participation and the continuous expansion of DeFi applications.
1.2 Recent Growth Drivers
Macroeconomic Financial Environment:
Global inflationary pressures and turbulence in financial markets have intensified, leading to a significant rise in investor demand for "on-chain cash". The U.S. Department of the Treasury defines stablecoins as "on-chain cash", providing a policy rationale for attracting traditional capital. At the same time, during severe fluctuations in crypto assets, stablecoins are viewed as a safe haven.
Technological advancements and cost advantages:
Some efficient public chains have significantly reduced transaction costs, such as USDT transfers on the Tron chain which have almost zero fees, attracting a large number of trading users. High-throughput blockchains like Solana are also promoting the expansion of stablecoin use cases due to their high speed and low fee characteristics.
Institution adopts enhancement:
In 2024, BlackRock will issue a tokenized fund based on USDC for on-chain exploration of assets such as bonds and real estate, highlighting the importance of stablecoins in institutional-level settlements. According to OKG Research's calculations: in an optimistic scenario where global compliance frameworks gradually unfold and institutions and individuals widely adopt them, the global supply of stablecoins is expected to reach $3 trillion by 2030, with monthly on-chain transaction volumes reaching $9 trillion and annual transaction totals potentially exceeding $100 trillion. This means that stablecoins will stand alongside traditional electronic payment systems, occupying a structurally foundational position in the global clearing network. In terms of market capitalization, stablecoins will become the "fourth type of base currency asset" after government bonds, cash, and bank deposits, serving as an important medium for digital payments and asset circulation.
DeFi demand pull:
Citibank pointed out that stablecoins are the "main gateway" to DeFi, and their low volatility characteristics make them the preferred choice for value storage and trading. According to a Chainalysis report, stablecoins account for more than two-thirds of on-chain transaction volume, widely used in scenarios such as lending, DEX liquidity provision, and mining. In 2024, the TVL of leading DeFi protocols like Uniswap and Aave is expected to grow by about 30%, with USDC and DAI being the main trading pairs. After the 2024 US elections, the market capitalization of stablecoins increased by $25 billion, further validating their core role in DeFi scenarios.
2. Structure and Competitive Landscape of the Stablecoin Market
2.1 Market Concentration and Overall Pattern
The current stablecoin market is highly concentrated, with Tether's market capitalization reaching $150.335 billion, accounting for 61.27%; USD Coin has a market capitalization of $60.822 billion, accounting for 24.79%. Together, the market share of the two reaches as high as 86.06%, forming a dual oligopoly.
Nevertheless, emerging stablecoins are gradually rising, challenging the dominant position. For example, USDE launched by Ethena Labs grew from $146 million at the beginning of 2024 to $4.889 billion, an increase of over 334 times, making it the fastest-growing stablecoin. In addition, USD1 and USD0 also show a good trend of market expansion, but in the short term, they are still not enough to shake the dominance of USDT and USDC.
Ranking of the market capitalization of the top 20 stablecoins globally ( Data source: CoinGecko May 16, 2025 ):
2.2 Competitive Landscape Analysis
Market competition mainly takes place among three types of stablecoins:
Fiat-collateralized stablecoins: USDT and USDC are backed by USD reserves, gaining an edge in centralized exchanges and traditional finance through transparency and compliance. For example, USDT added $30 billion in market cap in 2024, demonstrating its market trust.
Decentralized stablecoin: USDE, through a synthetic dollar mechanism and native yield model, is set to become a popular trading pair on a certain DEX in 2024, with a 50% increase in its locked value, rapidly rising in the DeFi ecosystem; while DAI, relying on the governance of a certain decentralized organization, attracts DeFi users, but is smaller in scale, only 3.631 billion.
Emerging stablecoins: USD1 quickly expanded to $2.133 billion through institutional endorsement; USD0 attracted users with DeFi incentive mechanisms, reaching a market capitalization of $641 million.
Others: The collapse of a certain algorithmic stablecoin in 2022 led to a trust crisis, prompting the market to lean towards more transparent fiat-backed stablecoins, resulting in USDC's market share growing by approximately 10% between 2023 and 2024.
The rise logic of 2.3 USDE
USDE is a synthetic dollar stablecoin based on Ethereum, developed by Ethena Labs, which uses staked Ethereum as collateral and employs a delta-neutral hedging strategy to maintain its peg to the US dollar. Its rapid growth can be attributed to the following factors:
Innovative Yield Mechanism:
USDE offers high returns to holders through the "Internet Bond" feature, sourced from the staking rewards of stETH and the funding rate spread in the perpetual contract market. This high-yield model has attracted a large number of DeFi users and institutional investors, especially in a low interest rate environment where traditional financial products struggle to provide similar returns.
Deep Integration of the DeFi Ecosystem:
The widespread support of USDE on DeFi platforms makes it one of the preferred stablecoins for DeFi users. Users can easily trade, provide liquidity, or participate in lending without worrying about price fluctuations. A data platform shows that the locked volume of USDE on a certain DEX has increased by 50%, reflecting its important position in the DeFi ecosystem.
Decentralization and anti-censorship features:
As a stablecoin fully based on crypto assets, USDE does not rely on traditional financial systems, which is particularly attractive to users pursuing decentralization, especially in regions where traditional financial services are limited or restricted.
Market demand growth:
With the expansion of the DeFi and cryptocurrency ecosystem, the demand for stablecoins continues to rise. USDE, as an innovative and fully decentralized stablecoin, meets the market's need for new stablecoin solutions.
Institutional Support and Collaboration:
The collaboration between Ethena Labs and well-known crypto investment institutions and exchanges has enhanced market confidence and liquidity for USDE.
Marketing and Community Engagement:
Ethena Labs quickly attracted the attention of users and developers through effective marketing strategies and community incentive programs, promoting the adoption of USDE.
2.4 Challenges of Emerging Stablecoins
USD1: Issued by World Liberty Financial, USD1 has a market capitalization of $2.133 billion, ranking 7th. Its market value skyrocketed from $128 million to $2.133 billion in just one week, showing rapid growth.
WLFI is associated with the Trump family and has secured a $200 million investment from a certain trading platform and MGX, enhancing institutional backing. A certain report indicates that USD1 has been chosen as the settlement currency for significant transactions, such as collaborative projects with the Pakistani government, further enhancing its market influence.
USD1 is rapidly expanding through exclusive agreements and institutional adoption, but its political background may pose regulatory risks.
USD0: USD0 issued by the Usual platform, with a market capitalization of 641 million USD, ranked 12th. Usual introduces an incentive mechanism through the USUAL token to attract users, allowing holders to participate in governance and share platform profits.
USD0 combines the low volatility of stablecoins with the yield potential of DeFi, attracting users who focus on decentralized innovation.
The unique positioning of USD0 in the DeFi ecosystem brings growth potential, but it needs to enhance market awareness and liquidity.
Emerging stablecoins challenge the market through differentiated strategies, but it is difficult to shake the dominance of USDT and USDC in the short term.
3. Analysis and Comparison of Mainstream Stablecoins
This section conducts a systematic analysis and comparison of the top five mainstream stablecoins by market capitalization from the dimensions of mechanism structure, asset support types, liquidity and application scenarios, and risk points.
3.1 Core Parameter Comparison Table
| Parameter | USDT | USDC | DAI | USDE | USD1 | |------|------|------|-----|------|------| | Issuer | Tether | Circle | MakerDAO | Ethena Labs | WLFI | | Market Cap ( million USD ) | 1503.35 | 608.22 | 36.31 | 48.89 | 21.33 | | Mechanism Type | Fiat Collateral | Fiat Collateral | Crypto Collateral | Synthetic | Fiat Collateral | | Reserve Assets | Cash, Treasury Bonds, etc. | Cash, Treasury Bonds | ETH, USDC, etc. | stETH | Unpublished | | Transparency | Quarterly Report | Monthly Audit | On-chain Public | On-chain Public | Unpublished | | Main Application Scenarios | Trading, Payment | Institutional Settlement | DeFi Lending | Yield