Stablecoins Thrive as Crypto Stumbles: A $4.23 Billion Growth Spree in 2 Weeks
The crypto market may be struggling, but stablecoins are thriving. Over the past two weeks, while major cryptocurrencies experienced fluctuations, the stablecoin sector saw a remarkable increase of $4.23 billion. This unexpected surge highlights the growing demand for stability in the volatile digital asset market.
Stablecoins Gain Strength in a Weak Market
As of mid-March 2025, the total market capitalization of stablecoins has reached $228.55 billion. This marks a significant expansion, reinforcing their crucial role in the crypto ecosystem. Stablecoins now account for approximately 8.34% of the entire $2.74 trillion crypto market.
Leading the charge is Tether (USDT), the dominant stablecoin, boasting a market capitalization of $143.74 billion. This represents a commanding 62.89% share of the stablecoin market and 5.25% of the total crypto economy. Meanwhile, Circle’s USDC has also witnessed steady growth, holding a market cap of $58.37 billion and making up 25.54% of the stablecoin sector.
Winners and Losers in the Stablecoin Battle
Over the past week, USDT’s supply grew by 0.44%, while USDC experienced a sharper 1.97% rise. Ethena’s USDe, the third-largest stablecoin, climbed to $5.45 billion following a 0.82% increase. Meanwhile, Sky’s USDS saw one of the strongest weekly gains at 3.63%, bringing its total market cap to $4.81 billion.
However, not all stablecoins benefited from this growth. Sky’s DAI dropped 5.27%, shrinking to $4.18 billion. First Digital’s FDUSD also fell by 2.48%, landing at $1.79 billion. Usual’s USD0 experienced the steepest decline, losing 5.72% and slipping below the $1 billion threshold.
Paypal’s PYUSD and New Players Shake Up the Market
One of the standout performers in recent weeks has been Paypal’s PYUSD, which saw a weekly increase of 0.33%. More impressively, over the past month, PYUSD surged by 29.14%, adding $172.29 million to its supply and bringing its market cap to $763.46 million.
Other notable players include USDX Money’s USDX, which holds ninth place with a $625 million market cap, experiencing only a minor dip of 0.05% this week. Meanwhile, Ondo’s USDY saw an explosive 55.55% growth over the past month, outperforming many of its competitors despite a slight weekly decline of 0.45%.
Stablecoins Prove Resilient Amid Crypto Volatility
As the broader crypto market struggles with uncertainty, stablecoins continue to expand their influence. The rapid growth in stablecoin supply suggests a rising preference for stability among investors and traders. Whether used for hedging against market volatility, enabling seamless transactions, or generating yield, stablecoins remain a crucial pillar of the digital asset ecosystem.
While industry leaders like USDT and USDC maintain their dominance, newer entrants such as PYUSD and USDY are making aggressive strides. The competition among stablecoins highlights a dynamic market that balances stability with innovation. As adoption grows, stablecoins are carving out an even bigger slice of the crypto economy, proving their resilience in both bull and bear markets.
