JPMorgan analysts said the stablecoin market has pulled ahead of the broader crypto ecosystem this year, fueled in part by the passage of the U.S. GENIUS Act.
At nearly $300 billion, the market has grown 42% year-to-date, nearly double the 21% growth of crypto overall, according to a report published Tuesday.
The report notes that stablecoins now make up about 7.5% of the $3.8 trillion total crypto market cap and roughly 1.3% of the U.S. M2 money supply, up 35 basis points since the start of the year.
Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing among other things a payment infrastructure, and are also used to transfer money internationally.
Since the GENIUS Act was signed on July 18, the stablecoin market cap has climbed 19%, underscoring how regulation has accelerated adoption, according to the bank.
The biggest beneficiary appears to be Circle’s (CRCL) USDC. JPMorgan analysts noted that after stagnating earlier in the year, its market cap has surged in the third quarter, rising from $61.5 billion at the end of June to $73.7 billion by late September, giving it a 25.5% share of the stablecoin market, up about 400 basis points in 2025.
Tether, meanwhile, has seen its dominance shrink, dropping from 67.5% at the start of the year to 60.4%, the bank said. Ethena’s synthetic stablecoin USDe has also gained ground, growing to $14.4 billion in circulation and securing a 5% share.
For years, USDT and USDC have defined a duopoly in the dollar stablecoin market, but that balance is shifting. JPMorgan said USDC has steadily eaten into Tether’s lead, now commanding nearly 30% of the two coins’ combined share, up from 24% at the start of the year.
The GENIUS Act may be tilting momentum further toward Circle, the analysts said, though a more fragmented market could ultimately benefit platforms like Bullish (BLSH) that provide liquidity services for a growing roster of stablecoin issuers.
Bullish is the owner of CoinDesk.
Read more: U.S. Stablecoin Battle Could Be Zero-Sum Game: JPMorgan
