TL;DR
- Stablecoin market share hit a record high of 10.19% of total crypto.
- Growth is driven by investor caution and clearer U.S. regulations.
- Tether (USDT) and USD Coin (USDC) both increased their dominance.
The combined market presence of stablecoins reached a new record high last week. Data shows these dollar-pegged digital assets now make up 10.19% of the total cryptocurrency market. This figure marks the first time the segment has crossed the 10% threshold. The previous ceiling for market share hovered between 7% and 9.8% for years.
The total value of all stablecoins surpassed $300 billion three months ago. This growth occurred during a broader recovery in digital asset prices. However, the recent increase in market share points to a separate trend. Investors are allocating more capital specifically to these stable assets relative to other cryptocurrencies like Bitcoin or Ethereum.
The market share for stablecoins has nearly doubled in less than twelve months
In the first quarter of 2025, their share of the total market jumped from 5.35% to over 8%. This shift happened during a period of declining prices for major cryptocurrencies. Investors often move funds into stablecoins to preserve value during market downturns.
The share decreased later as prices recovered and investors sought higher returns elsewhere. However, the trend reversed again in the second half of the year. Analysts point to two main factors. Growing investor caution created a broader risk-off mood within the sector. At the same time, clearer regulatory guidelines, including new U.S. rules for stablecoin reserves, provided more certainty.
Fresh capital continued entering the stablecoin sector even during a price drop in late Q4 2025. This inflow helped the total stablecoin market value remain above $300 billion for three consecutive months. A simultaneous drop in the total value of the wider crypto market, by nearly $400 billion, further amplified the stablecoin share. By late November, the share climbed to 9.24%. It reached 9.64% by the end of December.
The record of 10.19% was set on January 10, 2026. On that date, the stablecoin market capitalization hit $316 billion against a total crypto market value of $3.1 trillion. While this specific ratio has since adjusted back to approximately 9.8%, the breach of the 10% level is a clear marker of changing dynamics.
Analysis of Major Stablecoins Shows Concentrated Growth
A review of individual stablecoins reveals where new capital flowed. Tether (USDT) strengthened its position as the dominant asset. Its share of the total cryptocurrency market cap grew from 3.97% in January 2025 to 5.76% currently. The second-largest stablecoin, USDC, also increased its presence. Its market share moved from 1.55% a year ago to 2.31% now.
The most pronounced growth came from Ethena’s USDe. This synthetic dollar-pegged stablecoin saw its market share multiply 19 times over the past year. While starting from a much smaller base than Tether or USDC, USDe now constitutes roughly 0.2% of the entire crypto market. Its rapid expansion highlights investor appetite for different yield-generating models within the stablecoin category.
The overall expansion in market share demonstrates a maturing sector. Stablecoins are transitioning from a tool primarily for traders to a fundamental layer of digital finance. Their growing share reflects increased use for settlements, as collateral, and as a default holding asset during periods of uncertainty.
