The total stablecoin supply has surpassed $221 billion, making up more than 1% of the U.S. dollar M2 money supply.
Stablecoins, once a niche sector, now account for over 1% of the U.S. dollar M2 — a broad measure of money including cash and deposits — money supply, with the market reaching $221 billion after adding nearly $100 billion since 2024, according to data compiled by analysts at OurNetwork.
Tether’s (USDT) market share dropped from 73% to 64%, while Circle’s (USDC) gained ground, rising from 20% to 25%. And while both account for 89% of the total stablecoin market share, new players, like Ethena’s USDe and Usual’s USD0, are also making an impact.
Synthetic dollar USDe added $5.9 billion, while USD0 grew by $1.1 billion. FDUSD, which initially gained traction through promotions, has eventually “lost market share as these incentives ended and competition intensified,” the analysts wrote.
Per OutNetwork, USDC’s recent growth has been mainly pumped by adoption beyond Ethereum’s mainnet. The analysts note that the stablecoin issuer saw “explosive growth” of more than $7.7 billion worth of USDC on Solana, “likely fueled by a surge in meme coin trading activity.” On top of that, USDC also saw gains on Ethereum’s layer-2 solutions like Coinbase’s Base and Arbitrum.
Meanwhile, Circle CEO Jeremy Allaire appears set on strengthening the company’s U.S. presence, arguing that issuers of dollar-pegged tokens should be required to register in the country. He stated there “shouldn’t be a free pass” for stablecoin issuers in the U.S., which could make it more difficult for rival Tether to expand in the country after moving its headquarters to El Salvador.
