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Stablecoin Market Capitalization Reaches ATH of $278B in August

Total stablecoin market capitalization reached $278B, growing 5.11% month-over-month and marking the twenty-third consecutive monthly increase.

By CoinDesk Data
Updated Oct 1, 2025, 4:09 p.m. Published Sep 2, 2025, 3:03 p.m.
Stablecoins Report August 2025

What to know:

August delivered yet another milestone month for the stablecoin sector, with total market capitalization surging 5.11% to a new all-time high of $278 billion. The stablecoin market continues its streak with its twenty-third consecutive month of growth.

  • Stablecoin Market Achieves 23rd Consecutive Month of Growth: Total market capitalization reached $278 billion, representing 5.11% growth MoM.
  • Market Share Fragmentation Accelerates Despite USDT's Growth: Tether's market capitalization grew 1.62% to $167 billion, extending its growth streak to 24 months.
  • USDe Achieves Fastest Growth to $10 Billion Post-Terra: Ethena Labs' USDe reached $12.1 billion market capitalization after 47.8% monthly growth, becoming only the fifth stablecoin to surpass the $10 billion mark.

Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.

Ethena Labs' synthetic dollar stablecoin USDe emerged as a standout performer, surging 47.8% to $12.1 billion in market capitalization. The milestone makes USDe only the fifth stablecoin to cross the $10 billion threshold, achieving the feat in just 609 days since inception - the second-fastest on record after the now-defunct TerraClassic USD.

STORY CONTINUES BELOW
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USDe's growth comes as the stablecoin offers an alternative to traditional yield-bearing products following the approval of the GENIUS Act in the United States, which prohibits stablecoin issuers from offering direct yield. Ethena's protocol generates yield internally through synthetic, basis-trade mechanics, currently offering 4.76% yield with its staked variant sUSDe providing 6.02%.

Tether's Grip Loosens

While Tether USDT$1.0003 maintained its position as the dominant stablecoin with $167 billion in market cap - up 1.62% for the month - its market share declined to 60.2%, the lowest level since February 2023, with newer entrants like USDe and World Liberty Financial's USD1 capturing market share.

USDT remains firmly in control of trading activity, accounting for 80.3% of stablecoin trading volume on centralized exchanges - up from 70.8% in July and marking the first increase in three months.

New Players Rising

World Liberty Financial's USD1 reached a new all-time high of $2.43 billion in market cap, growing 11.6% in August. Trading activity around USD1 pairs surged to $1.71 billion, driven by increased exchange listings.

PayPal's PYUSD also showed strong momentum, rising 23.5% to $1.16 billion. The stablecoin recently expanded to Arbitrum and Stellar blockchain networks and was among the first stablecoins used in a U.S. public offering as part of a $1.15 billion settlement.

Data current as of August 26, 2025, sourced from CoinDesk Data and DeFiLlama. Full report accesible below.

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