Stablecoin Volumes Hit $2.5T as Supply Peaks – But Fragmentation Persists: Chainalysis Report

The stablecoin market has advanced over the previous 12 months. Recent findings from cost platform Bridge show that stablecoin transaction quantity has reached report highs, surpassing $2.5 trillion.

Data from Bridge additionally exhibits that the overall stablecoin provide has reached an all-time high previously few months, driven primarily by the growth of Tether’s USDT.

Additional findings from Chainalysis’s 2025 Global Adoption Index report word that between June 2024 and June 2025, USDT processed over $1 trillion monthly, peaking at $1.14 trillion in January 2025. Meanwhile, Circle’s USDC ranged from $1.24 to $3.29 trillion monthly, with significantly high exercise in October final 12 months.

Stablecoin Market Fragmented, But Growth Remains Strong

According to Chainalysis, these volumes present the continued centrality of Tether and USDC in crypto market infrastructure. Yet a whole bunch of different stablecoins are additionally being leveraged every day. This means that whereas at this time’s stablecoin ecosystem is increasing, fragmentation stays throughout the sector.

Chainalysis chief economist Kim Grauer informed Cryptonews that this divergence may additionally point out a shift in how stablecoins are getting used.

“USDC’s development seems intently linked to U.S.-based institutional rails and controlled corridors, whereas EURC’s rise suggests rising curiosity in euro-denominated digital belongings, probably pushed by MiCA-compliant platforms and European fintech adoption,” Grauer stated.

Expanding on this, Reeve Collins, chairman of stablecoin protocol STBL.com, informed Cryptonews that USDT seems to be dominant in rising markets the place it acts as digital money to offer entry to U.S. Dollars.

He added that PYUSD makes use of PayPal’s attain to normalize stablecoins in on a regular basis funds, although adoption stays small. At the time of writing, CoinMarketCap shows that the market capitalization of PYUSD is $1.18 billion.

“In this house, liquidity and utility outweigh model recognition, which is why USDT and USDC proceed to steer for now,” Collins stated.

Interestingly, findings from Chainalysis present that smaller stablecoins like EURC, PYUSD, and MakerDAO’s DAI have skilled fast development. The index report exhibits how EURC grew almost 89% month-over-month on common, with month-to-month quantity rising from roughly $47 million in June 2024 to over $7.5 billion by June 2025.

Findings additionally present that PYUSD sustained acceleration, rising from round $783 million to $3.95 billion in the identical interval.

Stablecoins For Institutions

While fast development has turn into obvious throughout well-liked stablecoins, further use circumstances are additional driving adoption.

For instance, a Ripple spokesperson informed Cryptonews that Ripple USD (RLUSD) is an enterprise-grade stablecoin, designed with regulatory compliance, utility, and transparency.

“Unlike stablecoins geared primarily towards retail customers, RLUSD has been purpose-built for enterprise utility,” they stated.

According to Ripple, frequent use circumstances for RLUSD embody facilitating the moment settlement of cross-border funds, offering liquidity for remittance and treasury operations, seamlessly integrating with decentralized finance (DeFi) protocols, and bridging between conventional fiat currencies and the crypto ecosystem to make sure an environment friendly transition when on-ramping/off-ramping in crypto.

These use circumstances are essential, particularly as stablecoins transfer beyond crypto-native trading tools to mainstream financial infrastructure. This already seems to be the case, as there was an increase in institutional exercise round stablecoins just lately.

Chainalysis’s index report notes that Stripe, Mastercard, and Visa have all launched merchandise permitting customers to spend stablecoins through conventional rails. Platforms like MetaMask, Kraken, and Crypto.com have just lately launched card-linked stablecoin funds.

At the identical time, conventional monetary establishments such as Citi and Bank of America are increasing their choices and will even launch their own stablecoins soon.

Stablecoins For Payments

Another fascinating use case for stablecoins facilities round retail and service provider funds.

According to Chainalysis, PYUSD’s current development might level to a broader urge for food for various, extremely regulated stablecoins in retail and cost contexts. Also on the service provider facet, partnerships between Circle, Paxos, and firms like Nuvei plan to streamline settlement in stablecoins.

This isn’t solely impacting the U.S. Dr. Sangmin Seo, chairman of Kaia DLT Foundation, informed Cryptonews that in areas like Korea, stablecoins for retail funds are shortly gaining traction.

“Stablecoin customers should buy merchandise through the use of tap-to-pay or on-line stablecoin-enabled cost options in Korea,” Dr. Seo stated.

He additional defined that Kaia’s USDT stablecoin has turn into the principle digital foreign money for the mini decentralized utility (dApp) ecosystem inside LINE Messenger, a well-liked messaging app in Asia.

“When customers get pleasure from Dapps on their on daily basis messaging app which dominates markets in Japan, Taiwan, and Thailand, they’ll use Kaia USDT for funds. Kaia USDT is now additionally obtainable in Visa-enabled tap-to-pay, Oobit, in South Korea, Thailand, and the Philippines. You can journey with the Oobit app to get pleasure from buying in these Asian international locations.”

Challenges May Hamper Adoption, But Innovation Continues

Although stablecoin development is accelerating in several areas, a number of challenges may slow adoption.

For occasion, Grauer defined that stablecoin utilization stays partly discouraged by conventional monetary gamers and regulators who’re nonetheless extra cautious about digital belongings extra broadly.

From a person’s perspective, Grauer thinks that the know-how stays partly advanced and probably too intimidating at this level for mainstream adoption.

However, as regulatory frameworks mature globally, Grauer is assured that stablecoins will transfer from a distinct segment monetary software to mainstream monetary infrastructure with real-world utility.

“The potential is immense, and unlocking this subsequent section of digital monetary innovation might be finest achieved with elevated regulatory readability, enhanced person expertise, and business collaboration,” she commented.

As for the way forward for stablecoins, Collins famous that development is only one piece of the puzzle.

“We’re coming into Stablecoins 2.0—The first wave digitized {dollars}, the following wave financializes them. Stablecoins gained’t simply be passive cost tokens; they’ll unlock yield, governance, and programmability,” Collins stated.

In order to attain this, Collins stated {that a} key shift shall be to separate principal from yield, in order that stablecoin customers can spend the greenback whereas nonetheless capturing an earnings stream.

“The problem, and the chance, is to construct this in full alignment with rising stablecoin rules,” he stated.

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