The stablecoin market is exhibiting significant growth, reaching a record of $224.9 billion. Major players like USDT and USDC account for the vast majority of this rise.
TradFi Struggles
According to the latest CoinGecko report, traditional finance-backed stablecoins like PayPal's PYUSD and SocGen's EURCV faced difficulties in gaining significant traction. Despite brand recognition and regulatory alignment, both coins demonstrated limited adoption amid the dominance of crypto-native market players.
Commodity-Backed Tokens Show Growth
Amid economic volatility, commodity-backed token market saw a 67.8% increase, adding $773.9 million to reach a record of $1.9 billion. However, this segment remains a minor player in the market, comprising just 0.8% of total fiat-backed stablecoins. Tether Gold (XAUT) and PAX Gold (PAXG) continue to lead this category, representing 84% of total market cap.
Tokenized Treasuries Experience Growth
In April 2025, the tokenized treasury market hit an all-time high with a market cap of $5.6 billion, a 544.8% increase from the previous year. A significant driver of this growth was the introduction of new trade tariffs in the US, prompting investor flight to safer assets. The BUIDL token by BlackRock, launched in July 2024, became the category leader, comprising 44% of the total market by April.
Despite impressive growth in the stablecoin and tokenized asset sectors, traditional financial institutions face challenges adapting to new conditions, highlighting the evolution of the cryptocurrency market.
