Stablecoin Supply Surges 63% to $225 Billion in 2024
2min read The stablecoin market witnessed a remarkable expansion in 2024, with the total supply surging by 63% from $138 billion in February 2024 to $225 billion in February 2025. This substantial increase underscores the growing acceptance and application of stablecoins across various financial sectors, including payments, decentralized finance (DeFi), and institutional investments. The escalation in stablecoin supply indicates their evolving role as a crucial link between traditional finance and the crypto ecosystem.
The growth in stablecoin supply was accompanied by a 53% year-on-year increase in active stablecoin wallets, rising from 19.6 million in February 2024 to 30 million in February 2025. This expansion in active addresses underscores the broadening user base and the increasing integration of stablecoins into daily financial activities. The stability provided by stablecoins, which are pegged to reserve assets such as the US dollar, makes them suitable for payments, remittances, and trading, unlike other volatile cryptocurrencies.
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The total stablecoin supply experienced a sharp rise, climbing from $138 billion in February 2024 to $225 billion in February 2025. This 63% increase in supply directly reflects the market cap, as stablecoins maintain a fixed value of $1. The growth in stablecoin supply is also mirrored by a dramatic expansion in transfer volumes. In February 2024, the monthly transfer volume stood at $1.9 trillion, but by February 2025, it had jumped to $4.1 trillion, marking a 115% year-on-year increase. The peak transfer volume was recorded in December 2024, reaching $5.1 trillion, although volumes tapered off in early 2025. Over the past year, stablecoins facilitated a total of $35 trillion in transactions.
Despite the surge in active addresses and total supply, the average transfer size remained relatively stable, slightly increasing from $676,000 in 2024 to $683,000 in 2025. However, noticeable spikes were seen in May and July, where the average transfer size rose to $2.6 million and $2.2 million, respectively. These spikes suggest significant institutional or whale activity during those months, reflecting the dual use of stablecoins across retail and institutional transactions.
The ongoing crypto market correction is not seen as the end of the bull cycle but rather a midpoint, as the steadily increasing stablecoin supply suggests continued investment inflows. The total stablecoin supply has now exceeded $225 billion, reinforcing the view that the market has not yet reached its peak. Historically, stablecoin supply has peaked at cycle tops, with the supply hitting $187 billion in April 2022 just as the bear market began. The current figure continues to rise, indicating that the market is still in a mid-cycle phase. Rising stablecoin inflows to exchanges are often seen as a sign of increasing buying pressure, as stablecoins serve as a key on-ramp from fiat to the crypto ecosystem.
The growing stablecoin supply also reflects the increasing adoption of stablecoins by institutional investors and the broader financial community. The stability and reliability of stablecoins make them an attractive option for institutional use, particularly in times of market volatility. The surge in stablecoin supply and activity suggests that the crypto bull cycle is still very much intact, despite macroeconomic uncertainties. Analysts believe that the market is still in a mid-cycle phase, with continued investment inflows and growing adoption driving the growth of the stablecoin market.
