Stablecoins now make up over 8% of the total crypto market, rising from 5.13% last year. Tether leads with the highest share, while Ethena USD shows rapid growth. Investors are turning to stablecoins for safety during market volatility. At the same time, Bitcoin’s share increases as many altcoins lose value.
Throughout the past year, investor behaviour has shown a clear inclination towards stable digital assets. As traditional cryptocurrencies continue to experience high levels of price fluctuation, market participants seek refuge in stablecoins, which are designed to maintain consistent value. The trend gains further momentum amid improved regulatory frameworks, expanding institutional adoption, and the growing utility of stablecoins in cross-border payments, decentralised finance (DeFi), and remittance services.
In early 2025, the crypto market experienced a significant dip following a sharp price increase in January. This volatility prompted many investors to either engage in strategic buying or exit riskier assets entirely. Notably, a considerable segment of the market moved funds into stablecoins, reflecting a defensive approach amid uncertainty.
Tether Strengthens Its Dominance, Ethena USD Emerges as a New Contender
Among all stablecoins, Tether (USDT) continues to dominate. Based on combined data from CoinMarketCap, CoinGecko, and DeFiLlama, Tether now represents 4.86% of the entire crypto market cap—up by 33% from its position in March 2024. Tether also reported a remarkable 48% surge in trading volume in February 2025, reaching $4.15 trillion. The data suggests that Tether remains the go-to stablecoin for both traders and institutional players.
Meanwhile, other major stablecoins have also recorded increases. USD Coin (USDC) currently makes up 1.99% of the total market capitalisation, nearly doubling its share from 1.1% a year ago. Dai (DAI), another established stablecoin, maintains a steady position, continuing to hold 0.18% of the market.
A notable development comes from Ethena USD (USDe), a synthetic stablecoin operating on the Ethereum blockchain. Ethena’s market capitalisation reaches $5.41 billion, equating to 0.18% of the overall crypto market. This marks a fourfold increase from its 0.04% share in March 2024, highlighting growing interest in emerging stablecoin models.
The combined market capitalisation of all stablecoins stands at $229 billion as of last week, representing 8.05% of the total cryptocurrency market. This figure marks a considerable increase from 5.13% one year earlier.
Bitcoin Retains Strength as Altcoins Weaken
In parallel with the rise of stablecoins, Bitcoin (BTC) continues to consolidate its dominance. The leading cryptocurrency now accounts for 58.7% of the total crypto market cap, a substantial increase from 49.6% in March 2024. This growth suggests that, despite its volatility, Bitcoin remains a preferred store of value for many investors amid ongoing global economic uncertainty.
Conversely, altcoins face declining investor interest. The collective market capitalisation of alternative cryptocurrencies has dropped to $1.19 trillion, accounting for 40.3% of the total crypto market. This represents a year-on-year decline of 2.4%, driven in part by cautious investor sentiment and a shift towards more stable and established digital assets.
The growing share of stablecoins, coupled with Bitcoin’s expanding market dominance, indicates a transition within the cryptocurrency ecosystem. While speculative assets continue to attract certain segments, the broader market shows increasing favour for security and predictability. As 2025 progresses, the role of stablecoins in facilitating digital finance, payments, and decentralised applications is likely to continue expanding.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
