Stablecoins Market Cap

About the Metric

Stablecoin Market Cap refers to the total circulating value of all stablecoins on different blockchains at a given point in time. It is calculated by multiplying the supply of each stablecoin by its pegged value (typically $1), then summing across all stablecoins (e.g., USDT, USDC, DAI). Currently USDT (Tether) and USDC (Circle) dominate the space with over 85% marketshare.

Stablecoins are also increasingly being used for cross-border payments for trade and e-commerce purchases. Read more on stablecoin payments.

Significance

Stablecoin Market Cap acts as a proxy for liquidity and demand for on-chain dollars/fiat. Unlike native crypto assets, stablecoins are used primarily for trading, lending, remittances, and DeFi participation, making their market cap a strong indicator of capital inflow into the crypto economy.

A growing stablecoin market cap often signals increased user trust and utility, while sudden drops may reflect risk-off behavior, redemptions, or regulatory shifts.