The stablecoin market has witnessed significant expansion throughout 2025, achieving a record market capitalization of $272 billion. This figure represents approximately 7% of the total cryptocurrency market valuation.
The substantial growth is largely attributed to the passage of the GENIUS Act, which provided crucial regulatory clarity surrounding the asset class. This legislative clarity bolstered confidence, notably accelerating institutional adoption of stablecoins.
Tether (USDT) maintains its dominant position within the sector, commanding a 60% market share of the stablecoin market. Stablecoins pegged to the US dollar overwhelmingly dominate the landscape, accounting for 98% of the overall market capitalization.
Investor interest in stablecoins surged, both retail and institutional, viewing them as a viable hedge against volatility typical in the broader cryptocurrency markets due to their direct peg to traditional fiat currencies. Increased global market interest is further evidenced by a significant rise in online searches for the term ‘stablecoins’ concurrent with the GENIUS Act’s passage and the market momentum.