While Tether and Circle still dominate the market, with 61% and 24% of the market share respectively, Ethena’s USDe has seen explosive growth, tripling its market cap in the past year.
The stablecoin sector has doubled in size since the start of the 2023-2026 cycle, hitting US$280 billion (AU$426 billion) in market cap, according to DefiLlama.
Moreover, McKinsey analysts project the market will surpass US$400B (AU$609B) by the end of 2025 and expand to US$2T (AU$3.04T) by 2028. What began as liquidity tools for crypto trading pairs now competes directly with legacy payment networks, offering speed, lower costs, and global reach.
As a surprise to no one, Ethereum holds the dominant share, with Dune Analytics data showing 56.1% of all stablecoins operating on the network. At the end of the day, as more stablecoins replace traditional cross-border rails, the more transaction fees flow to Ethereum.
But legislation is probably the biggest momentum driver in this story, thanks to the GENIUS Act. As Crypto News Australia reported, the stablecoin bill was signed into law in July 2025, creating the first federal framework for stablecoins. It essentially requires full 1:1 reserves in cash or short-term treasuries, mandates public reserve disclosures, and shields stablecoins from being treated as securities.
Market Leaders Respond to New Framework
Tether wasted no time as soon as the bill was passed. The stablecoin giant is looking to launch its own US-focused institutional stablecoin, and CEO Paolo Ardoino stated that the firm is already eyeing an entrance into the American market.
Interestingly, Ethena’s USDe is kind of a standout, having tripled its market cap since August 2024, while USDC is up 87% and USDT 39.5% in the same span, Artemis data shows. But USDT and USDC still have a massive grip on the market, controlling 61% and 24%, respectively. USDe barely carved out more than 4%.
Recently, Circle teamed up with Mastercard and Finastra to settle USDC and EURC for acquirers and merchants across Eastern Europe, the Middle East, and Africa. Meanwhile, Finastra integrated USDC into its Global PAYplus system.
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