TL;DR
- Stablecoins now make up 7.5% of the total crypto market ($250 billion), driven by a 60% YoY expansion as they cement roles in DeFi, remittances, and corporate treasuries.
- Tether (USDT) dominates roughly two-thirds of stablecoin supply, serving as the primary liquidity “rail” for traders and institutions seeking instant, low-volatility settlements.
- Combined with Bitcoin, stablecoins account for 73.5% of the market cap, a historic high that signals an accumulation phase and sets the stage for a potential altcoin rally.
Crypto markets are entering a new phase of consolidation as stablecoins surge to unprecedented heights, now accounting for 7.5% of total crypto capitalization. A new report from the analytics company Alphractal emphasizes this swift growth, fueled by institutional interest and traders’ desire for low-volatility assets, all while Bitcoin continues to dominate.
🔥Billions in Stablecoins are issued weekly, and the 90-day change for all Stablecoins shows a large amount of liquidity available in the market.
Tether (USDT) stands out, representing 66.2% of the entire Stablecoin market.
Currently, the Stablecoin market cap is close to $250B… pic.twitter.com/DugpqDiEPl
— Alphractal (@Alphractal) June 24, 2025
Stablecoins’ Surge: Hitting $250 Billion Mark
The collective market value of stablecoins has grown to nearly $250 billion, underscoring their evolution from niche instruments to a core part of the market infrastructure.
Once primarily used for simple on-ramps into crypto, these dollar-pegged tokens now underpin complex DeFi protocols, cross-border remittances, and even corporate treasury strategies. Growing regulatory clarity around reserve audits and compliance has bolstered confidence, fueling a 60% year-over-year leap in total stablecoin supply.
Tether’s Reign as Liquidity Backbone
Leading the charge in the stablecoin revolution is Tether (USDT), which holds approximately two-thirds of the market. USDT’s ubiquity across exchanges and chains cements its role as the primary “rail” for moving capital in and out of markets. Competing tokens like USDC and BUSD occupy distant second and third place.
Still, none match Tether’s USDT depth of liquidity or acceptance. For traders and institutions alike, USDT remains the go-to reservoir of dry powder, offering instant settlement without the volatility that plagues most crypto assets.
Bitcoin and Stablecoin Joint Dominance Signals Accumulation Phase
When combined with Bitcoin’s market share, stablecoin dominance now totals an eye-popping 73.5% of the entire crypto market cap. Historically, such elevated dominance levels coincide with periods of capital flight into “safe-harbor” assets before a rotation back into high-beta altcoins.
This pattern suggests investors may be quietly positioning, stocking up stablecoins and Bitcoin while awaiting fresh catalysts for a broader market rally.
Altseason on the Horizon: Analysts Weigh In
Alphractal’s CEO, João Wedson, believes the stage is set for an unexpected altcoin resurgence as early as summer 2025. Wedson argues that large pools of unspent stablecoin liquidity, combined with cautious sentiment, create potent fuel for altseason’s ignition. “With many tokens currently underheld relative to historical norms, even a modest shift in momentum could spark a parabolic run,” he notes.
