TL;DR
- Massive inflows: Stablecoins recorded $45.6B in net inflows during Q3 2025, a sharp 324% increase from the previous quarter, signaling renewed investor confidence in dollar-pegged assets.
- Market dominance: Tether’s USDT retained 59% of the market, Circle’s USDC held 25%, and Ethena’s USDe quickly captured 5%, showing both consolidation and fresh competition.
- Mixed signals: Despite capital growth, monthly active addresses dropped 22.6% and transfer volume fell 11%, raising concerns about declining user engagement.
Stablecoins surged in the third quarter of 2025, recording more than $45 billion in net inflows as investors flocked to dollar-pegged assets. Data from RWA.xyz highlighted that Tether’s USDT and Circle’s USDC dominated the quarter, while new entrants like Ethena’s USDe also carved out significant market share. The rapid growth underscores the increasing role of stablecoins in global crypto markets, even as other usage metrics showed signs of slowing momentum.
Record-Breaking Inflows
Stablecoin inflows jumped from $10.8 billion in Q2 to $45.6 billion in Q3, marking a 324% increase. Tether’s USDT led with $19.6 billion in net inflows, followed by USDC at $12.3 billion. Ethena’s synthetic stablecoin USDe added $9 billion, a dramatic leap from just $200 million in the prior quarter. PayPal USD and Sky’s USDS contributed $1.4 billion and $1.3 billion, respectively, while Ripple’s RLUSD and Ethena’s USDtb showed steady gains.
Market Leaders Cement Dominance
Tether’s USDT continues to dominate the stablecoin landscape, holding nearly 59% of the market, according to DefiLlama. Circle’s USDC follows with about 25%, while Ethena’s USDe has quickly captured nearly 5%. The overall stablecoin market capitalization grew to approximately $290 billion in the last 30 days, reflecting both the strength of established players and the rise of algorithmic challengers.
Ethereum Remains the Core Network
Ethereum remains the most significant blockchain for stablecoins, hosting $171 billion in circulating supply. Tron ranks second with $76 billion, while Solana, Arbitrum, and BNB Chain collectively account for $29.7 billion. The concentration of stablecoin activity on Ethereum reinforces its role as the backbone of decentralized finance, even as alternative networks seek to expand their share.
Usage Metrics Show Decline
Despite the surge in inflows and market capitalization, other indicators suggest a cooling in user activity. Monthly active addresses fell to 26 million, down 22.6% from the previous month. Transfer volume also declined, totaling $3.17 trillion, an 11% drop compared to 30 days earlier. These figures highlight a divergence between capital inflows and on-chain engagement, raising questions about the sustainability of current growth trends.
