Who Will Dominate the Stablecoin Market?

• Tether leads the stablecoin market, reaching $144.55B, but Circles USDC is growing rapidly.
• USDCs market cap hit $60.32B by April 2025, driven by increased demand and DeFi adoption.
• The stablecoin market shows resilience, with growing competition between Tether and USDC.

Stablecoins have experienced an exponential rise over the past few months, with Tether‘s USDT maintaining its position as the market leader. However, Circle’s USDC, although relatively new, has rapidly gained market share. Both stablecoins have witnessed a steady increase in market capitalization since mid-2024. Further, the stablecoins remain less volatile, compared to other market fluctuations, and still see a strong demand.

In an X post on Tuesday, Matrixport revealed that Tethers market capitalization has remained relatively stagnant over the last year, achieving roughly $144.55 billion as of April 2025. Notably, Tether is considered the most popular stablecoin since it offers investors a reliable way to avoid market volatility. With its large market cap, Tether reflects the trust that users have placed in USDT as a stable cryptocurrency.

USDCs Rapid Growth

Meanwhile, Circles USDC has increased its market capitalization to $60.55 billion as of April 2025. USDC has maintained the gradual rise by displaying stronger growth during late 2024. The increased adoption rate of USDC demonstrates why it has become a popular digital asset among institutional investors.

Tether remains the dominant stablecoin by market cap, while USDC is growing at a very steady rate. The increase in USDCs market capitalization is due to the increased use of the stablecoin and the increased confidence in Circle, which backs the cryptocurrency. This growth originates from the broader growth of decentralised finance (DeFi), which uses USDC as an essential mode of trading and funds.

Related: Tethers Pitch To DC: We Help Keep US Dollar Strong Globally

While the overall stablecoin inflows remain stable, they are also consistently increasing, indicating that the crypto market is far from stagnation. Though the growth is not sufficient to ignite a large-scale altcoin rally, it suggests strong underlying momentum in the digital asset space.

The increase in stablecoin deposits also happened during the latest volatility and correction in traditional equities and bonds, signaling that crypto is slowly decoupling from other financial markets. Despite recessionary circumstances, digital assets continue to attract interest as viable investment options.

Amid ongoing global discussions over tariffs and trade wars, the perspective on the stablecoin market looks more favorable. Both Tether and Circle are in a suitable position to benefit from the overall growth of the cryptocurrency sector and the rising demand for stable digital assets.