USDT Dominates Stablecoin Market with $157.7 Billion Market Cap as Sector Hits $257 Billion

The stablecoin market has reached a significant milestone, achieving a total market capitalization of $257.46 billion as of July 1, 2025, representing 7.81% of the entire cryptocurrency market. Tether (USDT) continues to lead the pack with a dominant 62.54% market share, boasting a market cap of $157.7 billion and an impressive daily trading volume of $62.2 billion. This underscores USDT's pivotal role in the crypto ecosystem as the most widely used stablecoin. Meanwhile, mid-tier stablecoins like DAI are demonstrating competitive trading volumes despite facing competition from newer entrants such as USDe. The growth of the stablecoin sector highlights its increasing importance in providing liquidity and stability within the volatile cryptocurrency markets. As the industry evolves, the dominance of USDT sets a high benchmark for competitors, while smaller stablecoins strive to carve out their niches in this rapidly expanding financial landscape.

Stablecoin Market Hits $257 Billion as Tether (USDT) Maintains Dominance

The stablecoin market capitalization reached $257.46 billion as of July 1, 2025, accounting for 7.81% of the total crypto market. Tether (USDT) continues to dominate with a 62.54% market share and $157.7 billion in market cap, underscored by $62.2 billion in daily trading volume.

Mid-tier stablecoins like DAI show competitive volume despite comparable market caps to newer entrants such as USDe. Smaller stablecoins remain niche, with low adoption reflected in minimal trading activity.

Stablecoins serve as critical infrastructure for crypto trading, liquidity pools, and bridging traditional finance with digital assets. Phoenix Group data highlights USDT's entrenched position across centralized exchanges, DeFi platforms, and cross-border transactions.

Tron Dominates USDT Transactions, Surpassing Ethereum by 5x

Tron has emerged as the leading blockchain for USDT transactions, outpacing ethereum by more than five times in daily volume. On June 29, users transferred $6.94 million worth of USDT via Tron, dwarfing Ethereum's $1.31 million. This trend underscores a broader shift toward Tron's low-cost, high-efficiency infrastructure, particularly in emerging markets.

CryptoQuant analyst Carmelo Alemán attributes Tron's dominance to its near-zero fees and instant settlements, making it a critical tool in economies grappling with hyperinflation or currency instability. Countries like Venezuela, Turkey, Nigeria, and Argentina increasingly rely on TRC-20 USDT as an alternative banking system accessible via mobile devices.

Major exchanges now default to TRC-20 for USDT deposits and withdrawals, accelerating a supply shift that began in late 2021. While Ethereum remains the leader in advanced decentralized finance, Tron's structural advantages have solidified its position as the preferred network for USDT value transfers. By June 2025, USDT on Tron had surpassed $80 billion in circulation.

Tether Executes $100M USDT Cross-Chain Swap Between Ethereum and Tron

Tether Treasury moved 100 million USDT to Bitfinex on Ethereum in what appears to be a strategic liquidity rebalancing. Blockchain trackers confirm an equivalent transfer back to Tether's reserves on Tron—a textbook chain swap maneuver to meet demand across ecosystems.

The transaction follows a pattern of substantial stablecoin movements, including a 2 billion USDT mint on June 22. Ethereum's DeFi dominance continues driving USDT demand, though Tron's swelling TVL suggests growing competition for stablecoin liquidity.

With a $157 billion market cap, Tether's orchestrated blockchain migrations reveal the operational scale required to maintain peg stability across networks. The stablecoin giant now functions as de facto infrastructure for crypto markets—its treasury movements serving as liquidity weathervanes for traders.