Stablecoin market hits record $310.12B as USDT and USDC dominate
The stablecoin sector reached a new market-cap peak of $310.117 billion on December 13, 2025, with current aggregate capitalization around $309.91 billion (DeFiLlama). Tether’s USDT remains largest at $186.242 billion (60.1% dominance) and Circle’s USDC is second at $78.315 billion (~25% dominance), together holding roughly 85% market share. Over 12 months stablecoins grew ~52.1% from $203.73B to $309.91B. In the past week USDT increased 0.32% (+$593.34M) with minting across Tron, Solana, Arbitrum, Aptos and Polygon; USDC rose 0.71% (+$555.56M) on Ethereum, Solana, Hyperliquid, Base and BSC. Other notable movers: Tron’s USDD +23.46%, crvUSD +28.92%, PayPal USD (PYUSD) added supply and rose 13.33% in 30 days to a $3.863B market cap. Yield-bearing stablecoins contracted: market cap down 1.9% in 30 days (StableWatch), with USDe and USDtb declining and several tokens (alUSD, smsUSD, sBOLD) plunging. Total yield-bearing sector stands near $19.86B across 64 coins. The growth is driven primarily by payment (non-yield) stablecoins and increased minting on multiple networks. Traders should note concentration risk in USDT/USDC, rising mint activity across Layer-1s/Layer-2s, and weakening demand for yield-bearing stablecoins after recent depegging and redemptions.
Neutral
A record-high stablecoin market cap signals increased liquidity and demand for fiat‑pegged tokens, which is generally supportive for crypto market functioning and trading (easier on/off ramps, margin collateral). The dominance concentration in USDT and USDC (~85%) increases counterparty and concentration risk — a structural concern rather than an immediate bearish trigger. Broad minting across L1s/L2s and rising supply of payment stablecoins (including PYUSD) points to continued utility-led growth and potential inflows into crypto markets, a mildly bullish factor. Conversely, the decline in yield-bearing stablecoins and notable depegging/redemptions (e.g., USDe, alUSD) highlights liquidity and confidence risks in riskier stablecoin models, which can produce episodic volatility. Overall impact: neutral — supportive for market liquidity and on‑chain activity (short‑term could be mildly bullish for altcoin flows and stablecoin-backed trading volume), while concentrated risk in USDT/USDC and fragility among yield-bearing tokens are tail risks that could cause localized market stress if confidence falters. Traders should monitor mint/redemption flows, peg stability, USDT/USDC reserves disclosures, and on‑chain stablecoin movements for signs of stress or large reallocations.