Stablecoin demand has accelerated sharply in the third quarter, with net inflows climbing to $45.6 billion, up more than 320% from the previous quarter’s $10.8 billion, according to data from RWA.xyz.
The sharp rise highlights a renewed appetite for U.S. dollar–pegged assets in the broader crypto market.
Tether and Circle Lead the Pack
Tether’s USDT continued to dominate, adding roughly $19.6 billion in net inflows over the 90-day period. Circle’s USDC followed with $12.3 billion, marking a dramatic leap from just $500 million in Q2. Ethena’s synthetic stablecoin, USDe, also emerged as a fast mover, attracting about $9 billion in new issuance.
Other issuers saw smaller but notable gains. PayPal USD (PYUSD) recorded inflows of $1.4 billion, while MakerDAO’s USDS added about $1.3 billion.
Emerging entrants such as Ripple USD (RLUSD) and Ethena’s USDtb reported steady growth as well.
Net inflows represent the difference between stablecoins minted and redeemed in a given period, meaning more tokens entered circulation than were withdrawn, which is an indicator of rising market demand.
Ethereum Holds the Lion’s Share
Ethereum maintained its status as the dominant network for stablecoins, hosting an estimated $171 billion in supply. Tron remained a distant second at $76 billion, with Solana, Arbitrum, and BNB Chain collectively accounting for another $29.7 billion.
From a token perspective, USDT continues to command the market with nearly 59% share, while USDC holds about 25%. Ethena’s USDe has quickly captured nearly 5% of the market.
Mixed Signals Beneath the Growth
Despite the surge in total supply and market capitalization, which climbed to roughly $290 billion over the past month, other activity metrics slipped. Cointelegraph reported that monthly active addresses fell 22.6% to about 26 million, and transfer volume dropped 11% to $3.17 trillion.
There is no doubt that the third quarter’s rapid expansion highlights how stablecoins remain central to crypto liquidity and trading, even as user activity shows signs of cooling.
With USDT and USDC firmly in the lead and newcomers like USDe gaining traction, the stablecoin landscape is entering its next phase of competition and growth. This new phase is likely to be defined by several dynamics:
- Diverse Use Cases: Beyond trading and arbitrage, stablecoins are increasingly being used for cross-border payments, decentralized finance (DeFi) lending, and on-chain savings products.
- Regulatory Pressure and Clarity: Governments from the U.S. to the EU and Asia are drafting clearer frameworks, which could both legitimize and challenge issuers, favoring those with transparent reserves and strong compliance.
- Emerging Players and Innovation: Algorithmic and synthetic models such as Ethena’s USDe introduce alternative collateral structures and interest-bearing mechanisms, creating fresh competition for established dollar-backed tokens.
- Multi-Chain Expansion: While Ethereum remains dominant, growing activity on networks like Tron, Solana, and Layer-2 chains is driving a need for stablecoins that can move seamlessly across ecosystems.
Together, these factors suggest that the stablecoin market is evolving from a two-token race into a broader, innovation-driven arena, where liquidity, regulatory readiness, and technological flexibility will determine the next leaders.
