May brought unprecedented momentum to the world of stablecoins. The total supply of these digital assets surged to an impressive $244 billion, while usage and trading activity hit all-time highs. Both Tether and USDC played major roles in this explosive growth.
🔹 More Active Wallets Than Ever Before
Throughout May, the stablecoin market experienced a true revival. 33.1 million unique wallets conducted at least one transaction using a stablecoin, clearly indicating that these assets are the most widely used crypto instruments today.
Users favored faster and cheaper blockchains, with TRON and BNB Smart Chain leading the way, each boasting over 10 million active wallets. The trend suggests that demand for low-cost payments and DeFi applications will continue to fuel this growth.
🔹 Stablecoin Supply Grew by Nearly 3%
Over the past month, the total stablecoin supply grew by 2.88%, marking yet another step toward global adoption. While each stablecoin expanded at its own pace, the overall trend remained strongly upward.
💳 Stablecoins Outpace Traditional Payment Systems
Stablecoins are no longer just an alternative—they are starting to rival traditional payment methods. In the past 30 days, stablecoin transactions totaled a staggering $2.2 trillion, surpassing even VISA card payments and international remittances.
The main use cases remain centralized exchanges and DeFi, but peer-to-peer payments and transfers between self-hosted wallets are gaining ground.
🔹 Tether Dominates Supply, USDC Leads in Bridging Activity
Tether (USDT) further cemented its position as the largest stablecoin, adding 3.9 billion new tokens in May. The most significant growth occurred on the TRON blockchain, which now holds over 77.7 billion USDT, surpassing Ethereum’s 73 billion.
Tether's total supply grew to over 153 billion tokens, with nearly daily increases.
USDC by Circle, while facing a supply drop (especially on Solana), remains one of the most actively used stablecoins. It currently has over 60 billion tokens in circulation and saw record activity in cross-chain transfers during May.
🔹 Bridging Boom: USDC Shatters Records
USDC saw a massive surge in cross-chain activity, particularly via the CCTP bridge, where volume rose 83.3% to $7.7 billion. This feature, allowing assets to move seamlessly across blockchains, reached an all-time high in May.
🔹 Which Stablecoin Types Dominate?
As of 2025, 90.5% of all stablecoins in circulation are backed by fiat currencies. This model is not only the most popular but also the most regulatory-friendly. Meanwhile, 9% of the market consists of crypto-collateralized stablecoins, with a combined value of $11.3 billion.
In contrast, algorithmic stablecoins have lost ground. Their total value dropped from $1.3 billion in 2024 to $752 million, reflecting the high-risk nature of such projects—many of which failed even in bull market conditions.
🔹 Ethena Expands, Sky Protocol Contracts
Stablecoin USDE by Ethena strengthened its position in May thanks to favorable Ethereum (ETH) price action—its supply rose from 4.6 billion to 5.5 billion tokens.
Meanwhile, USDS by Sky Protocol saw a decline—from over 8 billion tokens down to 7 billion.
📌 Summary: Stablecoins Confirm Their Role as Crypto’s Powerhouse
With growing supply, record-breaking activity, and even outpacing traditional payment systems, stablecoins are emerging as a core pillar of the crypto economy. Despite potential regulatory hurdles, current trends show that their use is not only stable—it’s accelerating. The future of digital payments may well belong to stablecoins.
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