JPMorgan analysts mentioned the stablecoin market has pulled forward of the broader crypto ecosystem this yr, fueled partially by the passage of the U.S. GENIUS Act.
At practically $300 billion, the market has grown 42% year-to-date, practically double the 21% progress of crypto total, in response to a report printed Tuesday.
The report notes that stablecoins now make up about 7.5% of the $3.8 trillion complete crypto market cap and roughly 1.3% of the U.S. M2 cash provide, up 35 foundation factors for the reason that begin of the yr.
Stablecoins are cryptocurrencies whose worth is tied to a different asset, such because the U.S. greenback or gold. They play a significant function in cryptocurrency markets, offering amongst different issues a fee infrastructure, and are additionally used to switch cash internationally.
For the reason that GENIUS Act was signed on July 18, the stablecoin market cap has climbed 19%, underscoring how regulation has accelerated adoption, in response to the financial institution.
The largest beneficiary seems to be Circle’s (CRCL) USDC. JPMorgan analysts famous that after stagnating earlier within the yr, its market cap has surged within the third quarter, rising from $61.5 billion on the finish of June to $73.7 billion by late September, giving it a 25.5% share of the stablecoin market, up about 400 foundation factors in 2025.
Tether, in the meantime, has seen its dominance shrink, dropping from 67.5% in the beginning of the yr to 60.4%, the financial institution mentioned. Ethena’s artificial stablecoin USDe has additionally gained floor, rising to $14.4 billion in circulation and securing a 5% share.
For years, USDT and USDC have outlined a duopoly within the greenback stablecoin market, however that stability is shifting. JPMorgan mentioned USDC has steadily eaten into Tether’s lead, now commanding practically 30% of the 2 cash’ mixed share, up from 24% in the beginning of the yr.
The GENIUS Act could also be tilting momentum additional towards Circle, the analysts mentioned, although a extra fragmented market may in the end profit platforms like Bullish (BLSH) that present liquidity companies for a rising roster of stablecoin issuers.
Bullish is the proprietor of CoinDesk.
Learn extra: U.S. Stablecoin Battle Might Be Zero-Sum Recreation: JPMorgan
