Evolution of the Stablecoin Market Ecosystem: USDC Share Rise, USDe Emerges

Stablecoins are reshaping the global financial landscape at an astonishing pace. According to the latest report "State of Stablecoins 2025," the stablecoin market has shown significant growth over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and continued increases in on-chain trading activity.

Market Size and Growth Trends

As of February 2025, the supply of stablecoins has reached $214 billion, with an annual transaction volume of up to $35 trillion, which is twice the annual transaction volume of a well-known payment company. Market activity has simultaneously increased, with the number of active on-chain addresses growing by 53%, exceeding 30 million. Institutional funds are pouring in on a large scale, promoting the deep integration of traditional finance and the crypto market.

Changes in Market Position of USDC and USDT

Under the drive of the compliance process and market strategies, USDC and USDT still dominate, but there are subtle changes in market share.

• The market value of USDC has doubled to $56 billion, primarily due to regulatory approvals, the addition of key strategic partners, and the rapid expansion of the global market.
• The total market capitalization of USDT has risen to 146 billion USD, still the largest stablecoin by market cap, but its market share has declined, and the adoption by institutions has decreased, gradually shifting focus to the P2P remittance market, solidifying its position in the global payment sector.

The Rise of Decentralized Stablecoins

In the decentralized finance (DeFi) ecosystem, the influence of decentralized stablecoins has significantly increased, with several emerging projects achieving breakthrough rises.

• USDe: Market capitalization surged from $146 million to $6.2 billion, making it the third largest stablecoin in the market, with the key to its rise being its innovative yield strategy and Delta neutral hedging mechanism.
• USDS: A compliance-friendly stablecoin launched after a well-known decentralized organization's rebranding, with a market value reaching 2.6 billion USD by February 2025. This adjustment has enhanced its competitiveness in the decentralized stablecoin market.

Capital Flow and Industry Distribution

The liquidity trends of stablecoins reflect the positioning and competitiveness of different public chains in the market:

• Ethereum remains the primary issuance platform for stablecoins, accounting for 55% of the supply share.
• A certain Layer2 network and a certain high-performance public blockchain have seen rapid growth in transaction volume, driven by the DeFi and Meme coin markets, and have become an important on-chain ecosystem for stablecoin fund circulation.
• A certain public chain continues to occupy a core position in the global P2P payment and cross-border remittance market, especially in emerging markets, where stablecoins are widely used for payments and savings.

Most stablecoin liquidity is primarily concentrated in centralized exchanges (CEX), with trading volume mainly driven by DeFi (DEX, lending, yield farming), reflecting the efficient flow of funds and innovation.

Core Functions and Future Development

Stablecoins have become a key infrastructure in the cryptocurrency market, while also driving innovation in the traditional financial sector. Industry experts are optimistic about the future development of stablecoins:

A general partner of an investment institution stated: "Stablecoins are the lifeline of the crypto market and a superconductor of the financial system. They open up new markets and financial opportunities, driving innovations that were previously difficult to access."

A product manager of a certain Layer 2 network pointed out: "The advantages of stablecoins in cross-border payments are significant. We hope to support more local currency stablecoins so that global users can trade on-chain using familiar currencies, thereby increasing the popularization of blockchain technology."

The head of a certain stablecoin project emphasized: "The next generation of stablecoins must have market resilience. Our core is a yield-supported stability mechanism, ensuring users receive a reliable dollar alternative."

The founder of a certain data analysis agency analyzed: "The flow of stablecoins depends on the quality of the infrastructure—low costs, fast transactions, and market demand. In a certain high-performance public chain, the trading pairs of Meme coins have extremely high liquidity and instant settlement demands, making stablecoins an indispensable part."

A representative of a public chain ecosystem stated: "We have become the preferred blockchain for stablecoin transactions, with daily trading volumes reaching billions of dollars. A well-known stablecoin has driven real economic activity on our network, especially in emerging markets, and has become a key tool for payments and savings."