Stablecoin Boom: Circulation Hits Record Near $300 Billion
Their total circulation has reached a new all-time high of $282.83 billion, according to DefiLlama data, marking a 128% surge in 2025.
Quick overview
- Stablecoins, pegged to fiat assets like the U.S. dollar, are gaining popularity as a payment method, with total circulation reaching $282.83 billion in 2025.
- The surge in stablecoin usage reflects increased demand for dollar-backed digital assets and a favorable regulatory environment following the passage of the Genius Act in the U.S.
- Stablecoins serve as a crucial link between the crypto ecosystem and traditional finance, facilitating token transfers and enhancing cross-border payments.
- Experts predict that stablecoin circulation could reach between $500 billion and $2 trillion by 2029, depending on user demand and regulatory actions.
Stablecoins—cryptocurrencies pegged to fiat assets like the U.S. dollar—are becoming increasingly popular as a means of payment.
Their total circulation has reached a new all-time high of $282.83 billion, according to DefiLlama data, marking a 128% surge so far in 2025. The rally reflects both growing demand for dollar-backed digital assets and a more favorable regulatory environment.
Dollar-Pegged Coins Keep Expanding
The rise cements stablecoins as a critical link between the crypto ecosystem and traditional finance. While their primary use is to facilitate token transfers and provide a hedge against volatility, their influence extends much further: they have become global distribution channels for U.S. dollars and key tools in cross-border payments and digital capital markets.
U.S. Sets the Pace
The boom coincides with the recent passage of the Genius Act in the U.S., signed into law by President Donald Trump, which establishes a federal regulatory framework for the industry. Treasury Secretary Scott Bessent said the law provides the “regulatory clarity the market needs” and paves the way for stablecoins to develop into a multibillion-dollar industry.
Experts project continued rapid growth. Circulation could plausibly hit $1 trillion by 2029, with estimates ranging from $500 billion to $2 trillion. Still, the sector’s trajectory will ultimately depend not only on user demand but also on the stance taken by the Federal Reserve, the Treasury, and Congress.
In this context, stablecoins are emerging as a decisive bridge between digital innovation and traditional financial structures—poised to multiply in scale and solidify their role as the cornerstone of dollar tokenization in the global economy.
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