2025 stablecoin landscape revealed: USDE rises strongly

Author: artemis__xyz

The stablecoin market has seen significant growth over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and continued increases in on-chain trading activity.

An unprecedented opportunity for stablecoins

Stablecoins are reshaping the global financial system at an unprecedented speed.

According to the report "The State of Stablecoins 2025" jointly published by Dune and Artemis, the stablecoin market has seen significant growth over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and continued increases in on-chain trading activity.

1. Market Size and Trends

By February 2025, the supply of stablecoins had reached $214 billion, with an annual trading volume of up to $35 trillion, twice the annual transaction volume of Visa. Market activity is rising in tandem, with the number of active on-chain addresses increasing by 53%, surpassing 30 million. Institutional funds are flowing in on a large scale, driving the deep integration of traditional finance (TradFi) with the crypto market.

The change in the dominance of USDC and USDT

With the push 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, mainly due to the approval of MiCA and DIFC regulations, the joining of important strategic partners such as Stripe and MoneyGram, and the rapid expansion of the global market.

The total market capitalization of USDT has grown to $146 billion, still making it the largest stablecoin by market value, but its market share has decreased, with institutional adoption declining, and the focus gradually shifting towards the P2P remittance market, solidifying its position in the global payments 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 growth.

USDe (Ethena Labs): Market capitalization surged from $146 million to $6.2 billion, becoming the third largest stablecoin in the market. The key to this growth lies in its innovative yield strategy and Delta-neutral hedging mechanism.

USDS (MakerDAO): The MakerDAO brand has been rebranded to Sky, and a compliance-friendly USDS has been launched, with a market capitalization reaching $2.6 billion by February 2025. This adjustment enhances its competitiveness in the decentralized stablecoin market.

Capital flow and industry distribution

The liquidity trend of stablecoins reflects 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.

Base and Solana have experienced rapid growth in trading volume, driven by the DeFi and meme coin markets, and have become important on-chain ecosystems for the circulation of stablecoin funds.

TRON continues to hold 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 efficient capital flow and innovation.

2 Core Functions and Future Development

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

"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 hard to reach."

——Dragonfly General Partner Rob Hadick

"The advantages of stablecoins in cross-border payments are significant. We hope Base will support more local currency stablecoins, allowing global users to trade on-chain using familiar currencies, thereby increasing the adoption of blockchain technology."

——Base Product Head Neodaoist

"The new generation of stablecoins must have market resilience. The core of USDe is a yield-supported stability mechanism that ensures users receive a reliable dollar substitute."

——Conor Ryder, Head of Research at Ethena Labs

"The flow of stablecoins depends on the quality of infrastructure—low cost, fast transactions, and market demand. In Solana, the trading of Meme coins has a high demand for liquidity and instant settlement, making stablecoins an indispensable part."

——Herd founder and data analyst Andrew Hong

"TRON has become the preferred blockchain for stablecoin trading, with daily transaction volumes reaching billions of dollars. USDT on TRON has driven real economic activity, especially in emerging markets, where it has become a key tool for payments and savings."

——TRON DAO Community Spokesperson Sam Elfarra