Stablecoin dominance in 2025 shows a split market: USDC leads ERC‑20 transfers on Ethereum while USDT commands volume on TRON, with total stablecoin supply at $271.1 billion. USD1 is emerging under new U.S. rules as a regulated alternative to watch.
- Total stablecoin supply reached $271.1 billion, led by USDT overall and USDC on Ethereum.
- USDC processes >$20B daily on a 7‑day average; USDT posts strong activity on TRON and BSC.
- New regulated entrants like USD1 posted a $23M mint after the GENIUS Act, signaling U.S. regulatory‑driven adoption.
Meta description: Stablecoin dominance 2025 — USDC leads on Ethereum while USDT rules TRON; total market $271.1B. Read the latest data and expert context from COINOTAG.
What is driving the shift in stablecoin dominance in 2025?
Stablecoin dominance in 2025 is driven by network-specific liquidity, exchange deposit patterns, and regulatory positioning. USDC leads on Ethereum because of deep DeFi integration and regulated reserve disclosures, while USDT’s transaction volumes surged on TRON and BSC due to heavy retail deposits on major exchanges.
How large is the stablecoin market now?
At the time of writing, the aggregate stablecoin market hit $271.1 billion in supply. This figure reflects circulating peg‑tokens across chains and underscores the continued importance of stablecoins for on‑chain settlements and decentralized finance.
Why has USDC pulled ahead on Ethereum?
USDC’s momentum on Ethereum stems from three factors: high DeFi composability, transparent reserve reporting, and focused ERC‑20 integrations. From 2018 to 2025, ERC‑20 stablecoin transfers totaled approximately $39.7 trillion, and USDC now processes more than $20 billion in daily transfers on a 7‑day average — outpacing USDT’s $12–$15 billion range.
CryptoOnChain and CryptoQuant data show USDC’s stronger on‑chain activity in lending, AMMs, and stablecoin‑native rails on Ethereum. DAI remains third by transfer share, holding roughly 26% of transfers on key Ethereum metrics.
Source: DeFiLlama
How did TRON become USDT’s powerhouse?
USDT’s activity migrated toward TRON because of lower fees and large retail inflows. Exchange deposit counts — particularly on Binance, Bybit, and HTX — pushed USDT‑TRC20 transaction counts above one million in a seven‑day window, the highest level in months.
Source: CryptoQuant
Because the index tracks transaction counts rather than volume, the surge highlights retail behavior and frequent on‑chain transfers, not just large institutional movements. For now, TRON is clearly USDT’s strongest network by transaction count.
What is USD1 and why does it matter?
USD1 is a newcomer built under recent U.S. regulatory frameworks (the GENIUS Act referenced in market reports). On 6 August 2025 a mint of $23 million USD1 occurred — the first since the GENIUS Act took effect in mid‑July.
Source: CryptoQuant
Though USD1 is small relative to USDT and USDC, its fully regulated structure and early issuance activity position it as a potential niche option for institutional and compliance‑focused flows.
Source: CryptoQuant
Frequently Asked Questions
How big is the stablecoin market right now?
Answer: The stablecoin market sits at about $271.1 billion in circulating supply as of this report, reflecting cross‑chain pegged tokens used for trading, payments, and DeFi settlement.
Which stablecoin is best for Ethereum DeFi?
Answer: USDC is currently the most integrated stablecoin for Ethereum DeFi due to transparent reserve disclosures and broad ERC‑20 compatibility, processing over $20B in daily transfers on a 7‑day average.
Is USDT still dominant?
Answer: Yes — USDT leads overall market share (about 60% of on‑chain transfer activity by some indexes) but its activity has shifted toward TRON and BSC, where transaction counts and retail deposits are higher.
Key Takeaways
- Market size: Stablecoins total $271.1B — important for liquidity and on‑chain settlement.
- Network split: USDC leads Ethereum; USDT leads TRON/BSC — winners vary by chain.
- Regulatory impact: USD1’s regulated issuance shows demand for compliant stablecoins in the U.S. market.
Conclusion
Stablecoin dominance in 2025 is not monolithic: it is network‑specific and driven by usage patterns. USDC dominates Ethereum rails and DeFi, USDT drives high transaction counts on TRON, and regulated entrants like USD1 are emerging under U.S. policy changes. Monitor on‑chain transfer metrics and exchange deposit flows to track shifts.
