Stablecoin Market Records 324% Growth in Q3 as Demand Surges
The stablecoin sector saw record inflows of $45.6 billion in the third quarter of 2025, a sharp rise from $10.8 billion in Q2. The surge underscores growing demand for US dollar-pegged assets as traders increasingly turn to stablecoins for liquidity and safety in volatile crypto markets.
Tether and USDC Dominate Inflows
According to data from RWA.xyz, Tether’s USDT led the market with $19.6 billion in net inflows, maintaining its position as the most widely used stablecoin. Circle’s USDC followed with $12.3 billion, a significant leap from the $500 million recorded in the previous quarter.
Ethena’s synthetic stablecoin USDe emerged as a new force, bringing in $9 billion in Q3 inflows, compared with just $200 million in Q2. Other contributors included PayPal USD (PYUSD) with $1.4 billion and MakerDAO’s USDS with $1.3 billion.
“The surge in inflows highlights stablecoins’ role as the backbone of liquidity in crypto markets,”
Market Expansion Across Networks
Stablecoin inflows rose by 324% quarter-over-quarter, with Ethereum remaining the dominant network, hosting $171 billion in circulating supply. Tron followed with $76 billion, while Solana, Arbitrum, and BNB Chain collectively held $29.7 billion.
As of late September, the total stablecoin market cap reached $290 billion, according to RWA.xyz and DefiLlama. Tether’s USDT commands nearly 59% of the market, with USDC at 25% and USDe approaching 5%.
While inflows and market cap grew, monthly activity showed a decline. RWA.xyz reported 26 million active addresses in the past month, a drop of 22.6%. Transfer volumes also fell to $3.17 trillion, down 11% from the previous month.
Despite this slowdown, analysts view the net inflow momentum as a signal of rising institutional and retail adoption of stablecoins, cementing their role as the foundation of the digital asset economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.