The global stablecoin market has reached a new milestone, with total market capitalization hitting $246.5 billion as of May 16, 2025, according to a new report from Phoenix Group. Stablecoins now represent 7.46% of the total cryptocurrency market, underlining their critical role in providing liquidity, facilitating trading, and powering decentralized finance (DeFi) ecosystems.
USDT and USDC Control Over 85% of Stablecoin Market Cap
The report reveals a strong market concentration, with Tether (USDT) and USD Coin (USDC) maintaining a dominant position.
USDT leads with a $151.0 billion market cap and an impressive $87.4 billion in daily trading volume.
USDC follows with a $60.6 billion market cap and $11.1 billion in 24-hour volume.
Combined, these two stablecoins account for over 85% of the entire stablecoin market cap, highlighting their pivotal role across centralized exchanges, DeFi platforms, and global payment systems.
High Volume-to-Cap Ratio for DAI and USDe Indicates Strong DeFi Usage
While centralized stablecoins dominate in terms of sheer size, decentralized alternatives like DAI and USDe are gaining ground through active usage.
DAI, with a market cap of $5.3 billion, posted a daily volume of $17.1 billion, signaling high turnover and frequent use in DeFi applications.
USDe recorded $150.3 million in volume against a $4.9 billion market cap, reflecting increased protocol-level engagement and speculative interest.
These tokens are becoming key instruments in decentralized lending, yield farming, and trading activities, where high transaction velocity is essential.
PYUSD, USDO, and USDY Highlight Emerging Stablecoin Diversity
Newer entrants like PayPal’s PYUSD, USDO, and USDY show the evolving landscape of stablecoin innovation:
PYUSD has a market cap of $911.5 million, but lower trading volume at $19.8 million, likely due to limited exchange availability.
USDO and USDY, with market caps of $647.1 million and $585.4 million respectively, reflect increasing diversity but haven’t yet reached significant trading activity levels.
Centralized Control Still Prevails, but Momentum Builds for Decentralized Options
Despite the growing number of stablecoins, the ecosystem remains highly centralized, with USDT and USDC setting the tone for market liquidity and utility. Still, the emergence of decentralized and niche stablecoins suggests that innovation is thriving, with room for alternative models of stable value and utility.
Conclusion: Stablecoins Continue to Anchor Crypto Liquidity
Stablecoins have solidified their role as the backbone of crypto trading and DeFi, and this latest data underscores their expanding influence. As decentralized options gain traction and newer tokens enter the space, the stablecoin sector is likely to see increased innovation and competition — potentially reshaping how value moves within and beyond blockchain networks.
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