TLDR
- The total supply of stablecoins has reached a record $304 billion, marking a significant increase despite the broader crypto market struggles.
- Tether remains the dominant stablecoin, holding over half of the total supply with approximately $180 billion.
- USDC follows as the second-largest stablecoin, with a supply of $75 billion, and continues to gain market share.
- Ethena’s yield-bearing stablecoin, USDe, has grown to $12 billion, making it the third-largest stablecoin by market size.
- The stablecoin supply surge comes even after the crypto market experienced one of its steepest declines on record in October 2025.
The supply of stablecoins has reached a new record of $304 billion, according to DefiLlama data. This surge comes despite the broader cryptocurrency market experiencing significant losses. The increase in stablecoin supply reflects a shift in investor behavior, as they move toward more secure assets amid market volatility.
Tether Dominates Stablecoin Market with $180B Supply
Tether (USDT) remains the dominant stablecoin in the market, with a circulating supply of approximately $180 billion. This represents more than half of the total stablecoin market. Tether’s position as the leader remains unchallenged, even as market conditions fluctuate.
Tether’s dominance is evident, as it significantly outpaces other stablecoins in market size. Despite recent market downturns, investors continue to prefer Tether due to its long-standing stability and liquidity. As one of the most trusted stablecoins, USDT remains a popular choice for capital preservation and stability.
USDC, with a supply of $75 billion, holds the second-largest share of the stablecoin market. It continues to see growth, benefiting from increased demand for dollar-pegged assets. Despite a market crash, USDC remains a strong alternative to Tether in the stablecoin space.
The rise of USDC is attributed to its backing by regulated financial institutions, which boosts investor confidence. It has gained widespread adoption across DeFi platforms, making it one of the most used stablecoins. The continued growth of USDC shows the shifting preferences toward more regulated stablecoins amidst economic uncertainty.
Ethena’s USDe Gains Traction Amid Market Chaos
Ethena’s yield-bearing stablecoin, USDe, has emerged as a notable player, now valued at $12 billion. While smaller compared to Tether and USDC, USDe’s rapid growth shows the increasing interest in alternative stablecoins. The rise of USDe has been one of the more significant trends in the market this year.
However, USDe faced challenges during the recent market crash. On October 10, USDe’s price dropped to $0.65 on Binance due to a liquidity issue with the exchange’s internal pricing system. The incident triggered forced liquidations but was resolved within 24 hours, and the price returned to its peg.
Ethena’s team explained that the price dip was caused by technical issues at Binance rather than flaws in USDe itself. Binance committed to returning $283 million to affected users, ensuring that investor confidence remained intact. Despite this, the incident highlights how technical issues at exchanges can exacerbate market volatility, even for stablecoins.
Despite the severe sell-off in the broader cryptocurrency market, the supply of stablecoins has reached unprecedented levels. This suggests that capital is not leaving the crypto ecosystem, but instead being redirected to less risky assets. As the market seeks stability, stablecoins provide a safe harbor, especially during times of uncertainty.
