Stablecoins have remained the largest category of digital assets in their market capitalization, reaching a value of $184.55B. Stablecoins such as Tether (USDT), USD Coin (USDC), and DAI help facilitate trade and payments hedge against volatility. New data from the Phoenix Group provide more information about the stability and market share of the top stablecoins today.
Market Overview
The stablecoins are anchored to traditional currencies, such as the US dollar, to ensure they do not fluctuate, giving traders and investors a haven during the volatility. Hence, the stablecoins are strongly dominated with a share of 6.17% of the entire crypto market cap, of which USDT contributes 69.59%.
USDT Leads the Pack with $124.1B Market Cap
Tether (USDT) remains the biggest stablecoin, with a total market capitalization of $124.1B. The 24-hour volume of $270.8B indicates USDT’s role as the global primary trading pair and bridge currency in cryptocurrency exchanges.
USD Coin (USDC) and DAI: Trusted and Regulated
USD Coin (USDC) comes in second, with a total market capitalization of $36.7B and a 24-hour volume of $20.4B. Supported by reserves and regulated by U.S regulators, USDC is one of the most secure and transparent stablecoins. It has gained popularity, especially among institutional investors and decentralized finance or DeFi applications, where trust and regulatory compliance matter.
DAI is another stablecoin linked to the US dollar and collateralized using crypto assets; its market cap is $5.3B. That is why DAI remains one of the most popular assets among DeFi users, with a 24-hour trading turnover of $275.2M. Unlike USDT or USDC, DAI’s price is backed by smart contracts and collateral, which makes it a special offer for people who do not want to deal with centralized assets.
Emerging Stablecoins: USDe, FDUSD, PYUSD, and Others
Other rising stablecoins such as USDe ($2.9B) and FDUSD ($2.3B) stablecoins are also emerging, though their volumes and caps differentiate from the top three main stablecoins. These emerging stablecoins are useful offer different options, and serve a unique segment of this market.
USDD, which has a market cap of $755.1M and daily trading volume of $12.9M, can also be regarded as stablecoins that offer diversification to users. FRAX possesses a market capitalization of $646.8M and has a daily trading volume of $37.8M. FRAX is semi algorithmic and semi collateral system and is designed for those that want some degree of stability between algorithmic and collateral based systems.
The PayPal USD (PYUSD) has capitalization of $536.3M a day trading volume of $23.1M is relatively easy for usage in the PayPal environment and aimed at the retail customers. Finally, there is TrueUSD (TUSD) with a market capitalization of $495.2M and a daily trading volume of $76.1M, which focuses on transparent and legal activities, so it is popular among exchange and DeFi users.
Stablecoin’s Critical Role in the Crypto Ecosystem
While USDT has the largest market share among stablecoins, other slowly growing options such as FRAX or PYUSD offer liquidity, help to avoid sharp price booms and so on, serve as the basis for DeFi. Consequently, these stablecoins remain core to the transitioning digital finance environment connecting digital and conventional finance forms while providing stability to the unpredictable crypto market.
