Data reveals Stablecoins surpass 1% of U.S. Dollar Monetary Base

The overall supply of stablecoins has exceeded $221 billion, now comprising over 1% of the U.S. dollar M2 money supply.

Once a niche segment, stablecoins now make up more than 1% of the U.S. dollar M2 money supply – a comprehensive measure of money including cash and deposits – with the market reaching $221 billion after having added nearly $100 billion since 2024, based on data gathered by analysts at OurNetwork.

Tether's (USDT) market share has decreased from 73% to 64%, while Circle's (USDC) has risen from 20% to 25%. Although both account for 89% of the total stablecoin market share, new competitors, such as Ethena's USDe and Usual's USD0, are also gaining influence.

Synthetic dollar USDe has added $5.9 billion, while USD0 has increased by $1.1 billion. FDUSD, which initially gained popularity through promotions, has eventually "lost market share as these incentives ended and competition intensified," according to the analysts.

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As per OutNetwork, USDC's recent growth has been primarily driven by adoption beyond Ethereum's mainnet. The analysts observe that the stablecoin issuer saw "explosive growth" of over $7.7 billion worth of USDC on Solana, "likely fueled by a surge in meme coin trading activity." Additionally, USDC has also experienced growth on Ethereum's layer-2 solutions like Coinbase's Base and Arbitrum.

In the meantime, Circle CEO Jeremy Allaire seems determined to fortify the company's U.S. presence, contending that issuers of dollar-pegged tokens should be obligated to register in the country. He expressed that there "shouldn't be a free pass" for stablecoin issuers in the U.S., which could potentially make it more challenging for rival Tether to expand in the country after relocating its headquarters to El Salvador.

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