Stablecoins Hit $4T Volume, Dominate 30% of Crypto Market

The stablecoin market has experienced remarkable expansion, with transaction volume skyrocketing 83% year-over-year to surpass $4 trillion. According to TRM Labs’ comprehensive analysis, this surge has elevated stablecoins to represent 30% of all cryptocurrency transactions, significantly outpacing the growth of traditional cryptocurrencies like Bitcoin and Ethereum. Leading stablecoins increased their share of the overall crypto market by 52% compared to the same period in 2024, demonstrating their growing centrality in the digital asset ecosystem.

Market concentration remains extreme, with Tether (USDT) and Circle (USDC) collectively controlling 93% of the total stablecoin market. The dominance extends to currency pegs as well, with more than 90% of fiat-backed stablecoins remaining tethered to the U.S. dollar. This consolidation reflects the established trust in these major players and the continued preference for dollar-denominated digital assets among global users. The total stablecoin market capitalization currently stands at approximately $312.2 billion according to CoinGecko data, with market sentiment remaining broadly bullish about future growth prospects.

Angela Ang, TRM’s Head of Policy and Strategic Partnerships for APAC, emphasized that this growth represents just the beginning of the adoption curve. “We are still just at the beginning of the stablecoin adoption curve,” she told Decrypt, noting that despite record adoption levels, stablecoins remain “only a fraction of the overall money supply.” Ang predicted continued institutional interest, stating that “as institutions seek to leverage digital assets for use cases like value transfer, interest will continue to surge.”

While stablecoins are achieving remarkable success in legitimate financial activities, they have simultaneously become the preferred vehicle for illicit crypto transactions. TRM Labs data reveals that stablecoins accounted for 60% of all illicit cryptocurrency activity in the year ending July 2025. This concerning trend highlights the dual-use nature of these digital assets, though it’s crucial to note that 99% of stablecoin usage remains legitimate overall.

The same features that make stablecoins attractive for legitimate use—low transaction costs, speed, and broad availability on open blockchains like TRON and Ethereum—have also made them appealing to bad actors. Angela Ang explained to Decrypt that stablecoins offer illicit actors “many of the benefits of conventional cryptocurrencies, such as cross-border value transfer at speed, but with a stability in value other cryptocurrencies don’t provide.” She noted that “illicit actors use stablecoins to move funds for the same reasons as the rest of us,” underscoring the technological neutrality of the underlying infrastructure.

Investment fraud emerged as the primary driver of illicit volume growth between 2024 and 2025, according to TRM’s analysis. More alarmingly, within the stablecoin ecosystem, extortion and blackmail activity saw the highest relative growth between January and July 2025, increasing by 380% year-on-year. This dramatic rise in specific types of criminal activity presents new challenges for regulators and law enforcement agencies worldwide.

South Asia has emerged as the standout region for crypto adoption growth in early 2025, with transaction volume increasing 80% year-on-year between January and July 2025 to reach $300 billion in total. This remarkable growth rate significantly outpaces global averages and demonstrates the region’s accelerating embrace of digital assets despite varying regulatory environments.

India ranked first in crypto adoption among all countries studied, just ahead of the United States. TRM attributed much of India’s strong performance to its young population and robust developer infrastructure, creating fertile ground for digital asset innovation. Pakistan followed closely in third place, with the country’s plans to establish a Virtual Assets Regulatory Authority (PVARA) potentially signaling a more structured regulatory approach. Bangladesh placed 14th in global adoption rankings—a notable achievement given the country’s official ban on cryptocurrency, suggesting that regulatory restrictions may not be effectively curbing public interest in digital assets.

The bullish sentiment around stablecoins’ future is reflected in prediction markets as well. On Myriad, the prediction market launched by Decrypt’s parent company Dastan, 56% of participants believe the total stablecoin market capitalization could exceed $360 billion before February 2026. This optimism, combined with the demonstrated growth patterns in regions like South Asia, suggests that stablecoins are positioned for continued expansion as both retail and institutional adoption increases globally.