Over the last week, the stablecoin market has seen a significant increase, adding nearly $5 billion. This trend is linked to supply growth in USDS and USDe while the market shifts into a new phase under federal regulation.
Market Overview of Stablecoins
The total stablecoin market cap currently sits at $264.99 billion, with USDT dominating at over $163.9 billion, accounting for more than 61% of the total. Meanwhile, there is notable growth amongst new market entrants.
Surge of New Stablecoins
USDS and USDe have emerged as key players this week. USDS increased its supply by 24.95%, adding nearly $990 million, bringing its market cap close to $5 billion. Meanwhile, USDe, issued by Ethena, jumped 24.63%, reaching a valuation of $7.21 billion.
Regulation and its Market Impact
This liquidity surge coincides with the passage of the GENIUS Act, which provides a clear regulatory framework for fiat-backed stablecoins. This new regulatory environment encourages increased market activity and opens doors for new issuers.
With billions of new tokens entering circulation and a regulatory green light, the stablecoin market is shifting from consolidation to fragmentation. The coming months may determine which players will emerge as leaders in this sector.
