The stablecoin sector achieved another milestone in July, with total market capitalization reaching a new all-time high of $261B, representing a 4.87% monthly increase.
This achievement extends an unprecedented twenty-two consecutive months of growth for the stablecoin market.
$1.60T Trading Volume Powers July’s Stablecoin Market Growth
According to the latest Stablecoins & CBDCs Report from CoinDesk, stablecoin pair trading volume on centralized exchanges reached $1.60T in July, coinciding with a broader digital asset rally driven by surging corporate adoption.
Source: Coindesk ResearchThe report reveals that Tether (USDT) maintains its sector leadership position, with market capitalization climbing 3.61% to $164B in July, marking its twenty-third consecutive monthly expansion.
Despite this growth, USDT’s market dominance experienced a slight contraction in July, declining from 62.5% to 61.8%.
Meanwhile, USD Coin (USDC) showed strong performance with a 3.78% increase to $63.6B, while Ethena USDe posted remarkable growth of 43.5% to reach $7.60B in market capitalization.
Ethena USDe’s expansion proves particularly noteworthy, occurring despite a significant decrease in staked USDe APY from over 20% to 9.79%.
A surprising finding from the report shows Falcon Finance’s USDf, which recorded the highest market capitalization increase among the top 10 stablecoins, surging 121% to $1.07B.
Conversely, BlackRock’s BUIDL and First Digital Labs’ FDUSD experienced the steepest declines, falling 15.9% and 8.54% to $2.40B and $8.54B, respectively.
Source: Coindesk ResearchThe report ranks the top 10 stablecoins by market capitalization as follows: Tether (USDT), USD Coin (USDC), Ethena USDe, Sky Dollar, Dai, BlackRock USD (BUIDL), World Liberty Financial USD (USDD), Ethena USDtb, First Digital USD, and Falcon USD.
Tron Network Captures 50% of Total USDT Supply As GENIUS Act Establishes Federal Stablecoin Framework
The stablecoin ecosystem on the Tron network reached a new all-time high in July, climbing to $81.9B.
For the first time since August 2024, Tron now commands over 50% of the total USDT supply across all blockchain networks.
The stablecoin sector’s consistent growth coincides with enhanced regulatory clarity. Most significantly, the GENIUS Act became law when President Trump signed the legislation on July 18.
This groundbreaking framework establishes the first federal regulations for “payment stablecoins,” mandating full 1:1 backing by cash or liquid U.S. Treasuries, while enforcing monthly reserve disclosures and auditing requirements.
These developments have accelerated adoption within the stablecoin sector as builders, users, and stakeholders gain increased confidence in its utility and efficiency.
For example, in July, the combined market capitalization of non-USD stablecoins, including euro and ruble-backed tokens, exceeded $1 billion for the first time.
Source: Coindesk ResearchThese trends have encouraged countries and traditional financial institutions to soften their stances toward crypto stablecoin adoption.
On August 1, Hong Kong’s licensing regime announced plans to permit HKD- and CNY-pegged stablecoins to compete in Asian settlement markets currently dominated by USD.
Just Yesterday, payment processor Remitly disclosed intentions to integrate stablecoin functionality into its global payment network.
Industry Split on Stablecoin Market Growth Projections: $2T vs $500B
The stablecoin wave of adoption and innovation has prompted industry leaders like Ripple CEO Brad Garlinghouse to project explosive sector growth, suggesting the market could expand from its current $261 billion valuation to as much as $2 trillion in the near future.
Speaking on CNBC’s “Squawk Box” in July, Garlinghouse characterized the potential expansion as “profound,” citing institutional momentum and evolving regulatory frameworks as primary catalysts.
However, JPMorgan has expressed skepticism regarding bullish stablecoin projections, forecasting more modest growth to $500B by 2028 and cautioning that trillion-dollar estimates are “far too optimistic.”
The banking giant cited limited mainstream adoption and restricted use cases beyond cryptocurrency trading as significant barriers to explosive growth.
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