USDC Gains Ground as Stablecoin Market Booms on U.S. Regulation: JPMorgan
JPMorgan analysts say the U.S. GENIUS Act has fueled a surge in stablecoin adoption, driving the market up 42% year-to-date, with Circle’s USDC steadily encroaching on Tether’s lead.
The report notes the stablecoin market now approaches $300 billion, nearly twice the 21% growth of the broader crypto ecosystem this year. Stablecoins represent roughly 7.5% of the $3.8 trillion crypto market cap and about 1.3% of U.S. M2 money supply, rising 35 basis points since January.
Since the GENIUS Act was enacted on July 18, stablecoins have climbed 19%, highlighting the role of regulatory clarity in accelerating adoption.
USDC has been the largest beneficiary, rising from $61.5 billion in June to $73.7 billion by late September, now holding 25.5% of the stablecoin market, up around 400 basis points this year.
Tether (USDT) has seen its dominance fall from 67.5% to 60.4%, while Ethena’s synthetic stablecoin USDe has grown to $14.4 billion, capturing 5% market share.
The long-standing USDT-USDC duopoly is shifting: USDC now commands nearly 30% of their combined share, up from 24% at the start of 2025. Analysts suggest the GENIUS Act may further favor Circle, while a broader, fragmented market could benefit platforms like Bullish (BLSH), which provide liquidity across multiple stablecoin issuers.
