Five Stablecoins Hold 91.5% of $321B Market

A report from Stablecoin Insider, with contributions from Banxa, the TON Foundation and Bluechip, found five stablecoins control 91.5% of the $321 billion supply after the market grew 41% year-over-year.

The analysis mapped the top 100 stablecoins and profiled 20 likely launches. It identified four collateral models — fiat-backed, crypto-backed, hybrid and synthetic — and found fiat-backed coins represent about $300 billion of the total supply.

The report concluded that distribution channels, not collateral design, were the primary drivers of the fastest growth. It cites PayPal’s PYUSD, which rose 726% after use in PayPal’s merchant network, and attributes USDT’s traction on the Tron network to lower fees that encourage on-chain activity.

Nikola Plecas of the TON Foundation commented: “Stablecoins are the core onboarding layer for users entering payments and Web3 activity on TON. Distribution through Telegram-linked wallets and mini-apps is reshaping how billions of people first touch digital dollars.”

Sean Moynihan, chief operating officer at Banxa, remarked: “Demand remains predominantly USD-centric even from European users, which is consistent with what we see more broadly.”

The report lists expected launches from established financial firms, including Qivalis backed by a 12-bank European consortium, Fidelity’s proposed FIDD, Tether’s USAT, HSBC’s planned HKD stablecoin and Revolut’s GBP stablecoin. The authors write these entrants will focus on regulatory compliance and existing rails.

On risk, the analysis records 23 stablecoins that have permanently depegged, including TerraUSD, which reached roughly $40 billion at its peak. Bluechip contributed a risk framework called SMIDGE that evaluates reserve transparency, concentration of holdings, liquidity of backing assets and dependence on particular chains or rails.

The report estimates stablecoin issuers generated about $13 billion in profit in the most recent year, with Tether accounting for more than $10 billion and Circle around $2.7 billion. Revenue sources include interest on reserves, transaction fees and integrations with decentralized finance protocols.

The dataset accompanying the report includes ticker, issuer, launch year, market cap, peg, collateral model, issuer type, primary blockchain and chain count for each of the top 100 stablecoins. The authors link market concentration to the distribution networks and commercial partnerships that give certain tokens wider access.