The stablecoin market has seen strong expansion over the past year, with total supply increasing 72% to nearly $300 billion, according to data analytics platform Artemis.
Much of that growth has been concentrated in Ethereum and Solana, and the recent launch of Plasma marked a milestone. More than $6 billion worth of stablecoins were issued on the network in its first week, setting a record for the debut of a new chain, Artemis said in Wednesday’s report.
Stablecoins are cryptocurrencies whose value is pegged to another asset, such as the US dollar or gold. They play an important role in the cryptocurrency markets as they provide payment infrastructure and are also used to transfer money internationally. Tether’s USDT is the largest stablecoin, followed by Circle’s USDC.
The dominance of Tether’s USDT and Circle’s (CRCL) USDC remains clear, as the two tokens still account for more than 85% of the market, according to the report. However, its grip has loosened slightly as competition from emerging broadcasters and new platforms intensifies.
The increase is not just about supply. Artemis said there is a growing set of use cases that reflect the growing role of stablecoins in the financial system. One example is USD AI, which has introduced a model that allows deposits to fund GPU loans for artificial intelligence (AI) companies, turning stablecoin holdings into a yield instrument similar to private credit.
Plasma’s massively oversubscribed issuance underlines how quickly new networks can generate liquidity, the report said, while MiniPay’s growth on Celo indicates a rebound in retail adoption, with transaction volumes increasing sharply in 2025.
That growing utility is also blurring the line between stablecoin platforms and banks. Artemis noted that Squads now secures more than $2 billion in assets, representing 15% of Solana’s total stablecoin supply. Meanwhile, RAIN’s Series B round is helping expand spending on card-linked stablecoins, which is approaching $1 billion.
Even centralized exchanges are starting to look like neobanks, with platforms like Binance, OKX, and Coinbase (COIN) offering payment pathways, debit cards, and savings tools anchored in stablecoins, the report adds.
Artemisa framed this change as part of a broader structural evolution. Stablecoins are no longer just a tool for cryptocurrency traders, but an emerging financial layer that increasingly reflects core banking functions.
Read more: Stablecoins will disrupt cross-border payments, says investment bank William Blair
